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Housing sector remains in a holding pattern

3 Jul 13

South Australian homeowners will be disappointed at the news that the official cash interest rate has been left unchanged at 2.75% during today’s Reserve Bank board meeting according to the Real Estate Institute of South Australia (REISA).

REISA President, Mr Greg Moulton, said that a cut in the interest rate would have been warmly welcomed by the housing sector to stimulate a much needed boost in the market and help to reinvigorate consumer confidence.

“While interest rate cuts over the past 12 months have been welcome, we continue to see buyers and investors in a holding pattern” he said.

“Last month’s cut saw a slight boost in confidence in the property market, but generally there is still a great deal of uncertainty.”

Mr Moulton also said that the Reserve Bank should consider lowering rates later this year if the right conditions prevail.

“With the help of a steady interest rate, housing affordability may start to improve so that more people can achieve their dream of owning a home.” Mr Moulton said.

Addressing home affordability issues, Mr Moulton said that all levels of Government must play their part.

“It’s been a week of transformation and Government now has a responsibility to get back to the job at hand. Let’s hope this includes a conversation about lessening the burden of property tax for South Australian home owners and investors.”