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Rate relief welcome by housing sector

7 May 13

Homeowners have been given a helping hand this month as the official cash interest rate was slashed at the Reserve Bank board meeting this afternoon, said the Real Estate Institute of South Australia (REISA).

REISA President, Mr Greg Moulton, 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.

“REISA members across the State are commenting that the housing market is measured and homebuyers, particularly first homebuyers, remain cautious.”

“We are seeing a watchful interest in the housing market with both buyers and sellers genuinely anxious about taking the next step and a cut in interest rates may just be the deciding factor.”

Mr Moulton said that housing affordability is still in the spotlight and interest rates are always front and centre of the homebuyers decision making.

“Home affordability is a key issue which is raised with REISA members on a daily basis and monthly mortgage repayments have to be considered by virtually every purchaser, whether they are buying to live in the property, or buying for investment purposes.”

Mr Moulton also said that the next challenge was to all the major lenders to pass on the rate drop and has urged banks to pass the cut onto Australian households.

“Banks should follow the lead of the Reserve Bank and pass on the full cut to ensure meaningful relief is felt by Australian households.”

“Bit by bit, we are starting to see indicators that the property market may be strengthening again and today’s decision is another driver which will see people return back to the stable investment of bricks and mortar.”