David Airey, President of The Real Estate Institute of Australia (REIA), stated earlier this week that the Reserve Bank’s decision to leave official interest rates on hold has been a good one, allowing Bunbury home owners some financial respite.
Given everyday living expenses, housing affordability and petrol increases, the decision was a welcomed one.
The House Price Index by the Australian Bureau of Statistics showed that the eight capital cities throughout Australia had a weighted average increase of 0.7 per cent during the December quarter of 2010.
Mr Airey has mentioned that the figures point to a major slow down in house price movements, which is clear evidence that another rate increase was not needed.
With house prices now stabilising and November 2010 being the last increase in the official cash rate, the hope is that the pressure for affordability of property will decline.
With more pressure than ever on home owners to meet daily living expenses, mortgage and emergency situations, the proportion of income required to meet loan payments increased 5.8 percentage points to 34.8 per cent in the 12 months to September 2010.
However, the breathing space the RBA has provided to Western Australian home owners might help this situation.