News Release Real Estate Institute of South Australia
17 April 2014
Time to cash in on housing market strength?
It can often be difficult to know when to enter the South Australian property market, as buyers tend to wait for an ideal set of circumstances to arise before making their first move.
For example, you might be waiting to build up an ample deposit, prices to go down in your desired area or interest rates to be reduced.
No matter what your perfect situation might be, there will come a time when you simply have to bite the bullet and make those initial steps onto the housing ladder.
Now could well be the time to do just that – interest rates have been at an all-time low for seven months now and if comments from the Reserve Bank of Australia (RBA) are to be believed, property market conditions are improving.
While some people might have been lucky enough to purchase when prices bottomed out, others have been biding their time as other factors fell into place to make it easier for them to buy.
The RBA explained how conditions in the housing market are especially strong at the moment, with house prices increasing 10.5% across the country in the 12 months to March.
Dwelling investment increased in the December quarter, showing many buyers recognised that times were good and conditions in the wider market were working in their favour.
Minutes from the RBA’s meeting on April 1 suggested that the low interest rate environment may stay in place for a while longer, giving would-be buyers the opportunity to secure competitive home loan products.
RBA Governor Glenn Stevens explained how in light of current conditions, “the most prudent course was likely to be a period of stability in interest rates”, potentially giving people the push they need to seek real estate advice.