Today’s decision to put interest rates on hold will ensure that Victoria’s real estate market remains firm, in an important period for the industry.
REIV CEO Enzo Raimondo said that there have been signs that the market will slow in 2014. “We’ve seen initial signs that consumer sentiment is not as strong as it had been late last year,” he said.
“Today’s interest rate announcement will support greater confidence amongst home buyers and investors at this important time.” Mr Raimondo said the decision will continue to assist home buyers in the market in this first quarter of the year.
“We finally saw the effects of last year’s low interest rates in the final few months of 2013 – with an increase in Melbourne’s median house price in the December quarter just gone,” he said. Mr Raimondo said that keeping interest rates on hold at this time will continue to prolong favourable borrowing conditions that buyers are currently experiencing.
“While it is yet to be seen whether the Reserve Bank will move on interest rates later this year, the decision enables home buyers and investors to act with greater certainty as 2014 gets underway.”