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Steady start to 2013

5 Feb 13

Today’s decision to leave the official cash rate on hold is no surprise to the property sector after a series of cuts in 2012, according to the Real Estate Institute of SA.

REISA President, Mr Greg Moulton, said that the market is slowly starting to record a little more activity after the series of rate reductions over the past six months, so it made sense the Reserve Bank would take the conservative option of leaving rates on hold at their first meeting for 2013.

“Whilst REISA members are starting to see more faces at the open inspections, the change in market activity is only incremental and the Reserve Bank will need to watch activity carefully and take action in the coming months if economic conditions indicate further cuts are needed,” he said.

“The official cash rate is now just 3% which offers excellent buying opportunities but there still may be a little movement downward later in the year which could stimulate activity further.”

“Job security and stability are important for those wanting to buy property and these factors will also be reviewed by the Reserve Bank as they keep a close eye on inflation and growth.”