The Reserve Bank of Australia (RBA) decided the cash rate will remain at 2.5 per cent at its board meeting yesterday (November 5), which could be great news for anyone considering making an investment in real estate in Adelaide.
With momentum growing in retail spending and the property market, sustained confidence in the economy will continue to let homebuyers reap the rewards of record low interest rates.
However, while the outlook for the property sector was strong leading into the summer season, the level of construction and first home buyer activity are two problematic areas, according to Loan Market Director Mark De Martino.
“First home buyers are nearly non-existent despite the surge of sales we’ve seen this summer. Perhaps state-based governments need to revisit the grants that help them purchase,” he said in a November 5 statement.
However, homebuyers may be encouraged into the property market with confidence in a stable interest rate. Mr De Martino predicts the RBA will leave the cash rate unchanged at its upcoming December meeting.
Those interested in purchasing property in Adelaide are recommended to do so soon, as now is a great time to purchase an existing property or build a new one to benefit from a competitive loan market driven by the historically low interest rates.