At the end of last month, we mentioned that the way things were looking, a stable cash rate that would continue to make real estate in Bunbury affordable for Australians was on the cards. Buyers of all kinds were gripping their seats in anticipation of what the Reserve Bank of Australia (RBA) board would actually do.
The RBA has now proven this late July prediction right, with RBA governor Glenn Stevens announcing on 4 August that the official cash rate would stay put at the unprecedentedly low value of 2 per cent. Mr Stevens cited a number of factors that went into the decision, including below-long-term-trend economic growth for Australia and an inflation rate that was tipped to stay within target. As always, however, Mr Stevens left the door open for a change to the rate in the future.
"A widely expected 'no change' decision has now been announced over three consecutive months," commented Housing Industry Association chief economist Dr Harley Dale.
"There is still the possibility of a further rate cut this cycle and chatter about this prospect will ebb and flow through the remainder of 2015."
For buyers, however, this means they can look forward to another month of unusually low interest rates on their mortgage. Not only that, but as Dr Dale, pointed out, the decision would be a further boon for buyers as it was likely to stimulate home building activity, pushing up supply and increasing choice.
With the RBA indicating rates won't go any higher over the course of 2015/16, it appears that getting a hold of some real estate in Australind, Eaton and surrounding areas is particularly attractive right now. Potential buyers will want to get in while mortgage affordability is still strong.