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Impact of May interest rate drop still being felt

3 Jul 12

Today’s decision to leave the official cash rate unchanged is not surprising and after the two recent cuts according to the Real Estate Institute of SA.

REISA President, Mr Greg Moulton, said that the housing market has welcomed the recent drop and buyer inquiry has lifted a little after this much needed boost was delivered.

“Interest rates are front and centre of homebuyers thinking, so the earlier drops have been really important to start to stimulate the property market,” he said

“The housing market is still going through a pattern of slower activity, so we do hope that in coming months, the Reserve Bank may even consider further drops.”

“On the flip side though, there are some great properties on the market which are available for astute buyers.”

Mr Moulton said that the release of the official June quarter data next week would further pinpoint where activity is starting to pick up.