How long will the cash rate stay low for?
Many buyers of property in Burpengary have already made the most of the all-time low cash rate, but there are still more who are yet to take advantage. The good news is, however, that the Reserve Bank of Australia (RBA) is maintaining the 2 per cent rate for another couple of weeks at least, giving you the opportunity to secure finance on your new home.
So why has the RBA decided that the cash rate will remain as it is? RBA governor Glenn Stevens revealed that although the Australian economy is showing signs of growth, they are still not as strong as they should be. There is some reason for optimism in the housing market, as the RBA reveals a considerable rise in construction levels across the nation.
The Housing Industry Association (HIA) believes that this is the right course of action, especially in light of the current economic conditions. It also anticipates that the cash rate could stay at 2 per cent for a while longer, which is great if you've yet to make those all-important first steps onto the property ladder.
HIA chief economist Harley Dale suggested that any changes to monetary policy need to ensure that property prices are kept on an even keel across the nation. While Sydney is experiencing strong price rises, this isn't the case in other areas.
"Any corrective action by regulators must be very targeted, so as not to adversely affect broader housing demand," said HIA chief economist Harley Dale.
"Residential building is one of the few bright lights in the economy at the moment, and it would be unwise to interfere in the market to an extent that risks derailing activity in this crucial sector."
If you're hoping to make your move on a new home in Burpengary, make sure you speak to our team. The experts at Ray White Burpengary are on hand to guide you through every stage of the property buying process.