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May RBA decision – what does this mean for property?

The Reserve Bank of Australia (RBA) decided to keep the official cash rate unchanged at 0.10 per cent at its meeting this week (the official RBA statement s available here Reserve Bank’s website).

RBA governor Philip Lowe indicated that Australia’s economic recovery is stronger than had been expected. “Housing markets have strengthened further, with prices rising in most markets. Housing credit growth to owner-occupiers has picked up, with strong demand from first-home buyers,” Lowe said.

The latest REA Insights Weekly Buyer Demand Report shows that the buyer demand remained high last week, falling slightly by 0.6 per cent. Demand has been at high levels throughout the latter half of 2020 and increased further in 2021, which suggests the continuous momentum in the housing market. Paul Ryan, REA Group Economist said, the demand is likely to remain at elevated levels over the coming weeks and months as interest in the property market remains high.

This, combined with the fact that there is no indication that lending policies will be tightened any time soon, indicates that property prices will continue the way they are.

If you need a hand finding a property, don’t hesitate to get in touch.

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