jeudi 27 mars 2014

Solid Activity Envisioned for Real Estate SA In 2014

By Colin James


The Reserve Bank of Australia has indicated that the low interest rates for home loans will continue throughout 2014, which is good news for many householders.

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

Moulton continues, "A low official cash rate and relative equilibrium in IRs enables everybody to plan in advance and gives certainty to real-estate sa decisions."Moulton goes on to claim that a period of steadiness for 2014 will be a boost for consumer confidence, particularly where South Australia real estate has not been performing so strongly, and equilibrium 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 real-estate sa in the short to medium term.

Moulton claims that by indicating that interest rates will remain low all though 2014 also shows the Reserve Bank is supporting solid activity in South Australia, "The SA market is intrinsically interlinked 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 trying 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 asserts that first house buyers of real-estate sa are still much on the border of the property market, "First home buyers of property are really having to make some compromises or come up with some innovative paths to access capital. "

Moulton says that the reports for first home buyers in Adelaide is that price is an issue all over Australia, he says that the other side of the coin for first home purchasers of real estate in South Australia is that once they have a foot in the door of the housing market, then they are going to be pleased with real-estate price growth.




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