Ensure you never miss an issue of the
real estate business bulletin
Rate hold welcome news for property market

Rate hold welcome news for property market

by Reporter 0 comments

By: Kate Miller

The housing industry has welcomed the RBA's decision to keep rates on hold and called for the central bank to continue to maintain the cash rate at the existing level.

Real Estate Institute of Australia (REIA) President David Airey said property market activity had slowly declined since April and housing affordability had continued to worsen.

"With the current state of the housing market continuing to slow, increasing interest rates would have been devastating for home buyers and would have further impacted on the strength of the housing market."

According to Mr Airey, this month's result was welcome, but home buyers needed some "stability and certainty over the longer term".

HIA chief economist Harley Dale concurred.

"Interest rate hikes in the first half of this year and their impact in fuelling interest rate expectations significantly dampened new housing demand amidst an acute shortage of dwelling stock," he said.

"The continuation of steady rates through the remainder of the year would bolster new home buying confidence."

According to Mr Dale, general inflationary pressures were in check and there was compelling evidence any recovery in home building would end prematurely if the cash rate were to rise.

"This is not an environment supportive of further rate rises."

 

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Rate hold welcome news for property market
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?