1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar




Property News

Reserve bank's role as housing market fulcrum

January 03, 2012

While the Reserve Bank of Australia (RBA) board is not set to be meeting for the first month in 2012, its past actions may already be having an impact on the state of residential real estate across the country.

As many seasoned homeowners will know, the interest rate set by the RBA is used as a broad tool to influence the spending behaviours of both individuals and corporations.

In particular, many investors and property professionals make use of the cash rate decision as a guide to understand how the various financial institutions in Australia will adjust their lending behaviour in the short term.

Higher interest rates are more likely to result in less loan approvals as the banks seek to ensure that their customers are capable of meeting increased repayment obligations - while lower percentages can lead to less restrictive practices.

With the statistics bureau showing that the total average wage of Australians has increased over the last year to August 30 by 4.2 per cent, it could mean that a decrease in the interest rate in February brings with it a sudden boom in buyers looking to enter the market in 2012.



Related Articles

Former industrial precincts to become residential hubs

The New South Wales government has announced plans to turn two former industrial areas in north ...
read more

Perth city budget raises fees but aims to revitalise city

The City of Perth budget for 2014/15 was passed on June 25, setting the stage for the ...
read more

Plans in motion for 'Brisbane's backyard'

Walkabout Creek will see a $2.5 million investment from the Queensland government, according ...
read more

Latest Articles

Increased construction figures across New South Wales highlight investment strength

Buyers looking for a great area to consider land investment and property construction in the near ...
read more

Regional Victorian home values increase significantly during last 12 months

Regional Victoria has seen house prices rise again during the last quarter, with new data ...
read more

RP Data: Quarterly rental data highlight slowing capital market

Owners of investment property could be interest to see the latest statistics from RP Data, with the ...
read more