Official cash rate decision sustains strengthening property market
The latest Reserve Bank of Australia (RBA) official cash rate decision has kept the rate at the historically low level of 2.5 per cent, which could be great for those looking into home loan finance and purchasing property in Sydney's Inner West suburbs.
Glenn Stevens, the governor of the RBA, announced earlier this week (March 4) the financial institution's choice to keep the cash rate low, stating an accommodative financial landscape across the nation was helping to stimulate the overall growth of Australia's economy. He mentioned both long term interest rates and risks were at a low, highlighting the increasing confidence of the consumers in markets like real estate.
Not only is this great news for buyers who are interested in securing a slice of Balmain real estate in the near future, but sellers could also be excited by the prospect of growing demand for Inner West properties as more people begin to take out home loans and investigate the markets themselves.
Housing Industry Association Economist Geordan Murray said the RBA's decision didn't come as a surprise, with recent discussions of the nation's economy highlighting the institution's monetary intentions for the coming months.
"The RBA appears satisfied with the way households are responding to current policy settings and particularly encouraged by the improvements in leading indicators of activity in the residential building sector," said Mr Murray in a March 4 statement.
This growing confidence could indicate the increasing strength of the housing industry, providing comfort for those sitting on the fence about taking out home loans and emerging themselves in the real estate market.
Malcolm Gunning, president of the Real Estate Institute of New South Wales, highlighted the state's increasing investor market, pointing out how current economic factors have helped to encourage their growth and highlighting the "huge role property plays in the economy".
These circumstances all point towards a strengthening real estate market, which could be good news for buyers and sellers of real estate in Sydney's Inner West suburbs.
