What does the RBA announcement mean for you?
On October 6, the Reserve Bank of Australia (RBA) announced it would be leaving the cash rate at the record-low level of 2 per cent, remaining unchanged since May 2015.
This means the historically low interest rates on home loans will continue, indicating that it's still a great time to buy property in Burpengary.
RBA Governor Glenn Stevens acknowledged that Australia's economy has been quite volatile in recent times, which validates the reason to ensure the monetary policy is accommodating.
"Low interest rates are acting to support borrowing and spending," he said.
What needs to be asked now is when will the rates change and what way will they go? The Commonwealth Bank (CB) asserts that while they may remain stable for the remainder of the year, they won't be going any lower.
The economy is picking up, largely driven by the healthy property market. The CB states that further reasons for the rates rising in the near future include:
- The last six months have seen the fastest employment growth in more than four years
- Approvals for new buildings are at an all-time high
- The manufacturing and services sectors are growing
Ideal conditions for new homes
Housing Industry Association Senior Economist Shane Garret stated that the "remarkably low" interest rates have been a major factor in the recovery of Australia's residential construction industry.
"Over the past year, the growth in new home building has been a vital bulwark for the economy," he said.
What does it mean for you?
Are you considering purchasing real estate in Burpengary? If so, now is certainly the time to act, as the rates wont last forever. If you would like to know more, you should get in touch with the team at Ray White. With years of experience, we can offer unique insights on the local market, ensuring you get the best deal.