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Christmas cheer in RBA decision

4 Dec 12

Homebuyers will welcome the Christmas message from the Reserve Bank today which will see the official interest rate cut by 25 basis points, according to the Real Estate Institute of South Australia (REISA).

Welcoming the decision, REISA President, Mr Greg Moulton, said that the decision to drop the official cash rate before Christmas was expected by the market and would be welcomed by those who are considering purchase or are already working hard to pay off a mortgage.

“The housing market has been flat recently, and any changes to improve the market, such as a drop in interest rates, are important to entice people to sign a contract and buy before the year is out,” Mr Moulton said.

“Bit by bit, these small rate cuts over the past 12 months have started to attract people back to buying property so we are confident that today’s cut will have an impact on the market.”

Commenting on the outlook for 2013, Mr Moulton said that the market may lift a little throughout 2013, particularly with the recent rate cuts.

“Right across the economy, sectors are flat, and this always reflects in the housing market, but gradually, as confidence grows, we expect to see some increased activity in the sales market.”