‘Longest and lowest period’ of interest rates gives buyers a leg-up

Whether you're in the great state of South Australia or not, there's a good chance you might be scouting around for quality real estate in Adelaide. Many people would love to join the residents of this vibrant, cosmopolitan city, but could be concerned about whether the market at the moment is right for them.

These worries could well fade away for many property hunters thanks to the Reserve Bank of Australia (RBA). At the beginning of the month, the RBA's Board met like it always does and decided to keep the cash rate at 2.5 per cent – something it's also always been doing lately. 

The cash rate – which is at a historically low number right now – is what has been keeping interest rates for home and other loans so low over the last 12 months. According to Loan Market, it is "the longest and lowest period of rate stability in decades", which is helping lift consumer confidence in uncertain economic times. 

"The low interest rates of the past year have been great for consumers either looking to get into the property market or pay lower interest rates on their existing mortgages," Loan Market director Mark De Martino commented on 1 July. 

Mr De Martino further pointed out that the affordable market conditions created by the low interest rates was having a positive impact on first home buyers, a group which has sorely needed a boost in recent times.

"We've seen enquiries from First Home Buyers as high as almost 50 per cent of all our home loan enquiries this year," Mr De Martino said. 

Mr De Martino further suggested that first home buyers could even become the primary drivers of the property market, as activity in this group keeps increasing. So it may be time to throw caution to the wind and get that property in Adelaide you've been eyeing up for some time.