Stabilising interest rates provides confidence boost
South Australia's peak residential real estate body said the Reserve Bank's decision to keep interest rates on hold will bolster confidence in the property market.
Greg Moulton, president of the Real Estate Institute of South Australia (REISA), said holding the official cash rate steady at three per cent indicates that the RBA's stance on monetary policy is sustainable.
The property expert went on to say that stabilisation of low interest rates is already starting to have an impact, which it enticing more buyers into the market.
"REISA members are saying that the first two months of the year have started to show some promising signs that housing stock is starting to move and the low interest rates are no doubt an important factor in purchase decisions," Mr Moulton remarked.
"Of course a further cut to rates would be welcome, but the reality is, our current interest rate levels are very low and with this expected to continue for some time, people are really starting to turn back to property as an investment decision."
At this month's meeting, the RBA cited improving global economic conditions as the reason behind its decision to keep interest rates on hold.
It also said last year's interest rate cuts are starting to have an effect in the marketplace, with this likely to continue over the coming months.