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Impact of May interest rate drop still being felt

5 Jun 12

Today’s decision to cut interest rates by a further 25 basis points after last month’s 50 basis point cut is another step in the right direction according to the Real Estate Institute of SA.

REISA President, Mr Greg Moulton, said that the housing has welcomed the May drop and buyers have lifted a little after this much needed boost was delivered.

“Interest rates are front and centre of homebuyers thinking, so the drop in June was really important to continue to stimulate the property market,” he said

“What we are seeing is a bit more activity at open inspections and people starting to move towards making a purchasing decision, which is positive after some tough times in the real estate market.”

“We are still just weeks from the last decision though and the major lenders are responding to the cut, so we are hoping that there may still be more positivity to come from last month’s drop.”

Commenting on some bank’s refusal or hesitation to pass on the full cut to homebuyers, Mr Moulton said that it was really disappointing to see this trend as buying a home was such an important goal of everyday Australians.

“As a nation, we typically aspire to own a property we can call our own and it’s disappointing that banks and lenders who return healthy profits each year, are looking to make more money off this fundamental need.”