Cash rate remains unchanged at 2.75 per cent

The Reserve Bank of Australia (RBA) has announced that it will leave the official cash rate at 2.75 per cent, in news that may be of interest to anyone considering buying or selling Inner West real estate.

In a statement released July 2, RBA governor Glenn Stevens confirmed that the cash rate would stay unchanged for the second straight month, as easier financial conditions are expected to keep inflation under control in the near future.

"[The Board] decided that the stance of monetary policy remained appropriate for the time being," said Mr Stevens.

Mr Stevens did, however, leave the door open for further easing, should such a measure be required in order to support demand.

The Real Estate Institute of Australia (REIA) has commented on the decision, saying that it was expected following the historically low cash rate cuts implemented by the RBA in May.

"The market has been reacting positively on the recent cash rate cuts. The first quarter of 2013 had the seventh consecutive improvement in housing affordability," said REIA president Peter Bushby on July 2.

The REIA has pointed out that the decrease in the cash rate and the resulting lowering of mortgage rates has increased demand from investors and non-first home buyers across the country.

"Auction results are improving in strength, while increases in housing finance commitments and building activity are also positive," added Mr Bushby.

That would suggest that anyone looking to sell Balmain, Rozelle, Lilyfield, Birchgrove or Leichhardt real estate may want to act quickly to take advantage of strong market conditions.

The Inner West Sydney property market has been particularly hot lately, recording an auction clearance rate of 90 per cent during the last week of June, and the RBA's decision may well drive even greater demand in the area.