Reserve Bank pulls the right reins on interest rates

Media release - 5th November, 2013

Cash rate on hold at 2.5 percent

Today’s decision by the board of the Reserve Bank of Australia to leave the official cash rate on hold at 2.5 percent will ensure the traditional Spring selling market extends to Christmas and potentially beyond, according to Brian Reid, Chief Operating Officer, Raine & Horne.

“Leaving official rates on hold is a clear sign that eight cuts since November 2011 have hit the mark,” says Mr Reid.

“This outcome represents a stamp of approval for the Australian economy, and is delivered in the wake of improved retail spending data, and news our capital cities continue to record very strong auction clearance rates, which is a sure sign of pent-up buyer demand for quality real estate.”

According to the latest ANZ Australian Housing Market Update, Sydney posted a clearance rate of 77 percent last weekend, while it was 71 percent in Melbourne and 80 percent in Adelaide.

“I expect that for those vendors who have been sitting on the fence, today’s judgement will give them the confidence to make a move, and we will see a bounce in the number of homes listed for sale in November,” says Mr Reid.

“A late rush to list homes will push the traditional Spring selling market out to Christmas and beyond, especially with plenty of buyers, buoyed by stable interest rates, looking to pounce on quality homes.”

Mr Reid is warning the extended Spring market also has implications for those in the real estate industry who may be considering winding down for Christmas.

“We expect that it will business-as-usual for real estate offices right around Australia up to, and possibly into, the New Year,” says Mr Reid.

“This is a pleasant change for our industry, however business owners will need to reconsider how they operate their offices over the upcoming summer break, as we are expecting a robust six months for real estate, especially now many experts are predicting the next move for interest rates is up.”

-ENDS-

For further media information contact:

Brian Reid, COO Raine & Horne, 0418 324 036  

Andrew Harrington, National Marketing & Communications Coordinator on 02 9258 5400