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Wednesday, 2 April 2014

Solid Activity Envisioned for Real Estate SA In 2014

By Colin James


The Reserve Bank of Australia has pointed to the fact that the low interest rates for home loans will continue throughout 2014, which is good news for many property owners.

Head of Harcourts for South Australia Greg Moulton says that the indication from the Reserve Bank governor Glenn Stevens that the low cash rate is unlikely to change any time soon, will result in buoyant real estate sa for 2014. "Maintaining the official cash rate at 2.5% is fab news for investors, householders and first house buyers of property SA," asserts Mr Moulton.

Moulton continues, "A low official cash rate and relative steadiness in rates enables purchasers to plan in advance and gives certainty to real-estate sa decisions."Moulton goes on to say that a period of stability for 2014 will be a boost for purchaser confidence, particularly where South Australia real-estate has not been performing so strongly, and stability will keep up the momentum in other real estate SA markets that are already performing well. The governor of the Reserve Bank has to act in the best interest of the Australian economy and by leaving the official cash rate unchanged, the Reserve Bank is providing confidence to property sa in the short to medium term.

Moulton says that by meaning that rates will remain low throughout 2014 also shows the Reserve Bank is supporting solid activity in South Australia, "The SA property market is intrinsically connected to the local South Australian economy, and particularly the Adelaide economy, due to home business owners drawing down on capital gain from their home and re-investing it into their business. "

The challenge for the Reserve Bank is to balance the good health of the economy with first home purchasers who are endeavoring to get a foot in the door of real estate. Moulton points towards new stats out showing that first house purchasers make up just 9.9% of all mortgages issued in February and says that first home buyers of property sa are still much on the periphery of the real estate market, "First home purchasers of property are truly having to make some compromises or come up with some cutting edge ways to access capital. "

Moulton claims the stories for first house purchasers in Adelaide is that price is an issue all over Australia, he claims that the other side of the coin for first house buyers of real estate in South Australia is that once they have a foot in the door of the housing market, then they'll be pleased with property price growth.




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