After 10 rate hikes, RBA decides to keep rates on hold over the April’s meeting, which will bring stability and certainty to the real estate market and may lead to price increase again. At its monthly meeting on Tuesday, because of a clear peak in inflation and weak economic conditions, RBA board left the official cash rate unchanged at 3.6%. RBA Governor Philip Lowe said: “The decision to leave rate unchanged this month gives the Committee more time to assess economic conditions and prospects in an environment of considerable uncertainty. The Committee anticipates that further monetary policy tightening may be required to ensure that inflation returns to target.” As the economist Eleanor Creagh of PropTrack says, in the end, a range of economic measures will give RBA enough confidence to sit tight and observe the impacts of its sharp tightening so far.
Although the pause is good news for borrowers, the prospect of more interest rate hikes happen in the future, for which has already prompted Australian real estate market to achieve a rebalance last year, with most of the districts’ housing prices in Australia have fallen for nice consecutive months. But the latest PropTrack House Price Index shows that this trend appears to have been reversed to the level by the end of last year, the price decline had moderated and is now moving higher again. Across Australia, housing prices edged up 0.13% in March and 0.49% this year. “
Realtisan recommends that buyers who have interests at real estate market to act ASAP because now is a good timing.