Official cash rate stable for fourth consecutive month
Anyone interested in buying a house in the near future could be in luck, with the Reserve Bank of Australia (RBA) announcing its decision to retain the official cash rate at 2.5 per. This is the last meeting for 2013 , with the next one taking place in February next year.
This could be a great time for buyers enter into the new year, with the low cash rate potentially spurring on the development and growth of the housing industry in the near future.
Governor of the RBA Glenn Stevens said the latest decision was made for a number of reasons, with one of the main ones being the increase in "interest sensitive" spending. This includes home loan applications, due to the rising confidence afforded by reduced interest rates.
There has also been an increase in the amount of household financing, with the housing and equity markets strengthening over time and proving to be a great avenue for investment.
Regardless of whether you're looking into property investment in order to bolster your portfolio, a first home buyer trying to secure your dream home, or a seasoned buyer hoping to upgrade - the current economic climate could easily accommodate your real estate goals.
The Housing Industry Association (HIA) has agreed with the RBA's decision, with Chief Economist Dr Harley Dale stating the current cash rate has lowered interest rates enough to continue the strength of the housing market well into the new year.
"The residential construction industry can be a key driver of the rebalancing of growth given the large reach that new home building and renovations activity has into wider areas of the economy, most notably retail and manufacturing," said Dr Dale in a December 3 statement.
Dr Dale went on to highlight that, while there has been a great recovery in the new housing industry, this was encouraged by the low interest rates. These need to be sustained for a longer period of time in order to continue this industry's development.
If you're interested in getting involved in the real estate market - whether developed or off the plan - now could be the best time to take the plunge.Take advantage of the low cash rate and reduced interest rates in order to give you and your family an early Christmas present!