Stable inflation across Australia reinforces strengthening property market

Inflation has remained steady during March after fears it could result in an interest rate rise, highlighting the returning stability of the economy and presenting a number of interesting circumstances within the real estate industry. According to the latest release from the Housing Industry Association (HIA), this means the low interest rates are expected to remain steady well into 2014. 

This is great news for those looking into purchasing property in Sydney's Inner West suburbs over the coming months. Following the cash rate's drop to a historically low level of 2.5 per cent in August last year, interest rates have been trending low in response to this change - making home loans more competitive and opening up the market to property buyers. 

According to HIA Senior Economist Shane Garrett, the inflation figures remaining within the Reserve Bank of Australia's predicted threshold aligns with continued recovery being experienced across the nation's residential housing market - especially in Sydney. 

"Excess capacity in the economy has taken some of the heat out of price pressures resulting from the weaker dollar. This is good news both for existing homeowners and for those considering purchasing their home," said Mr Garrett in an April 23 statement. 

"The bottom line is that interest rates are likely to remain at very low levels for some time to come. A combination of low and stable interest rates is also welcome from those operating in the housing industry, particularly small businesses." 

These results and predictions reinforce home lending figures seen earlier in the month from the Australian Bureau of Statistics (April 9), which highlighted that new home lending had grown significantly during the final three months of 2013 as the momentum continued forward into the near year. 

Now could be a great time to consider investigating home loan options and begin looking into potential real estate across the Sydney's Inner West suburbs.