Latest cash rate decision extends opportunity for buyers
April 2, 2014 / Written by Rich Harvey
While popular opinion said the official cash rate would stay at its record-low level during April, there's a good chance plenty of investors and home buyers were waiting on the news with bated breath.
However, prospective homeowners of all stripes can breathe easy, as the Reserve Bank of Australia (RBA) has decided to leave the official cash rate unchanged at 2.5 per cent.
This will continue to be a boost for the Australian real estate industry, as the ultra-low cash rate has helped spur on buyer demand across the country by encouraging low interest rates for home loan products.
RBA Governor Glenn Stevens highlighted this point himself in his announcement, stating that house prices "have increased significantly over the past year", much of which can be attributed to increased demand from buyers looking to score an affordable deal.
However, those looking to buy a house in Australia may want to act sooner rather than later, according to the Real Estate Institute of New South Wales (REINSW).
REINSW Chief Executive Officer Tim McKibbin said the "low interest rate honeymoon" could be over soon, as forecasts point to rates rising within the next 18 months.
Mr McKibbin also said limited inventory is an issue buyers must be wary of.
"The housing shortage is a real crisis and we must look at new ways to increase the volume of properties available," Mr McKibbin said.
"Government should be encouraging older Australians to downsize. This could be done by stamp duty concessions for those selling the family home."
Whether you're looking to invest in New South Wales or purchase a new family home, finding the right buyers agent in Sydney can make all the difference.
By utilising a qualified buyers advocate, you can find the right property more quickly and take advantage of low interest rates while they remain.