The Real Estate Institute of South Australia (REISA) has welcomed the decision of the Reserve Bank of Australia to lower the cash rate by 25 basis points to a low of 2.25%.
Interest rates have remained at historically low levels since August 2013 and this has greatly assisted owners and purchasers in their mortgage repayments. This new cut – a record low – will give some more breathing space to mortgagees and further stimulate purchasing activity within the real estate sector.
In South Australia, we currently have the highest median ever recorded for metropolitan Adelaide but the volume of sales is not showing significant movement. This cut will hopefully increase consumer confidence and encourage more purchasers into the market.
This cut to a new record low – which I hope the banks will pass on in full – will saver homeowners hundreds of dollars a year in mortgage repayments.
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