House prices 'show signs of stabilising'
Residential property prices are showing "signs of stabilising", according to the governor of the Reserve Bank of Australia (RBA).
Speaking yesterday (April 3) as he announced that the RBA's monetary policy committee would leave the cash rate steady at 4.25 per cent for the third consecutive time in 2012, Glenn Stevens asserted that the housing market "remains soft".
While residential property prices declined throughout 2011, they have recently shown some promising signs, he said.
Nonetheless, rates will stay steady until new key data is released that will reassess Australia's inflation outlook.
Economists widely anticipate that interest rates will be cut later this year and property bodies - including the Real Estate Institute of New South Wales (REINSW) - have asserted that action should be taken sooner rather than later.
REINSW president Christian Payne remarked yesterday that "softening" property prices may mean that further stimulation is needed in the market in the form of rate cuts.
He added that "patchy" activity in the housing market sends a "clear message" that the Reserve Bank should take action.
The RBA meets on the first Tuesday of every month - the next meeting is scheduled to take place on May 1.