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ISCOVER
Simon Parker
The RBA’s decision to reduce official interest rates has been welcomed by industry pundits.
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“This is welcome news for home buyers, particularly first home buyers; REIA hope the banks play their part and pass on the rate cuts in full,” Real Estate Institute of Australia’s (REIA) acting president Pamela Bennett said.
The RBA reduced the official cash rate yesterday by 0.25 per cent to 4.5 per cent.
The REIA said its June quarter data showed home owners were contributing 34.6 per cent of their income to monthly loan repayments, although this should now fall to 33.8 per cent as a result of the 0.25 per cent reduction.
“If rate cuts are passed on, the average Australian mortgage holder will reduce their monthly repayments from $2237 to $2187; a saving of $50 per month,” Ms Bennett said.
Brian White, chairman of the Ray White Group, said the rate reduction should see a swathe of relunctant buyers and sellers enter the market.
“There are many people on the sideline who have been awaiting a more favourable cash rate before engaging in the market and this, in turn, has been impacting other sectors of our economy,” he said.
"It's encouraging for the RBA to recognise that people need to feel secure in their property equity in order to spend elsewhere. When an individual buys a home they are effectively embarking on a long journey with the RBA."
Mr White said the property market had remained positive despite recent debate about interest rates.
“In terms of what we're experiencing as a company, we have continued to see a consistent volume of property transactions across the nation meaning Australians are still purchasing and listing property."
