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Rate relief welcome by housing sector

1 May 12

Today’s drop in interest rates will give the property market an important boost in activity which has been long overdue, according to the Real Estate Institute of SA.

REISA Chief Executive Officer, Mr Greg Troughton, said that today’s rate drop was much anticipated and many buyers had been waiting for a fall in the official cash rate before they signed a contract.

“Times have been tough in the housing market for some time and buyers have been waiting for this downward movement in rates,” he said.

“Now the trigger has been pulled, we can expect some more activity in the marketplace over the coming months.”

“What will be important for the Reserve Bank to watch, is whether this movement is enough to stimulate activity or whether another rate cut will be needed in the coming months.”

Mr Troughton also said that the next challenge was to all the major lenders to pass on the rate drop.

“Some banks have made it clear that they won’t be beating to the drum of the RBA, so we do recommend that buyers do their homework and ensure they are getting a good deal on their home loan,”

“In tough economic times, every dollar counts and getting a good deal on your home loan may mean the difference between securing the home of your dreams or a property that simply meets your needs.”