RBA Holds Firm on Cash Rate at 4.35%, Urges Boost in Western Australia's Housing Supply

In a decisive move, the Reserve Bank of Australia (RBA) announced yesterday that it would keep the cash rate steady at 4.35%, surprising some economists who had expected adjustments due to a recent dip in inflation.

This decision, the highest cash rate since November 2011, is expected to influence the real estate market positively. Stable interest rates can instill confidence in potential sellers, potentially encouraging them to list their properties.

Coinciding with the decision is the RBA's move to reduce its yearly meetings, allowing for more comprehensive assessments of the economy. This adjustment is likely to enhance the central bank's ability to make informed decisions about monetary policy.

Observers predict that the steady interest rates may lead to an uptick in house prices as sellers gain confidence and enter the market, increasing demand for homes.

In summary, the RBA's decision could mark a turning point for the real estate market, with stable interest rates potentially prompting increased property listings and a subsequent rise in house prices. As the year progresses, market dynamics will be closely monitored to gauge the full impact of this announcement.

Few words from Paulette:

"With every rate announcement I hold my breath, as so many homeowners we are working with assess whether they will stay or go whilst buyers must reassess their buying capacity. It is a stomach churning rollercoaster!

This period, fraught with stress, also unveils unique opportunities for sellers.

Amidst the uncertainty, motivated buyers are emerging, ready to act quickly on properties that match their revised criteria, creating a dynamic environment where well-positioned homes can attract premium interest.

This juxtaposition of challenge and opportunity defines the current market landscape."

Paulette Contessi 

Director / Licensee

CONTESSI PROPERTIES