Owning property in Adelaide is set to become even more affordable, with the Reserve Bank's decision to trim the cash rate down by 25 basis points to a new record low of 2.25 per cent on 3 February. This move was welcomed by the Real Estate Institute of South Australia (REISA).
Rates have been historically low since August 2013, ahead of months of speculation about interest rates and the future of Australia's property market – but finally this move will provide some certainty for Adelaide property owners.
REISA says the low rates have greatly assisted buyers and owners in repaying the mortgages, but this new cut will create an even bigger reprieve, potentially saving households hundreds of dollars a year in mortgage repayments. The resulting improved consumer confidence will benefit the Adelaide market greatly and ideally boost buying activity. While median property prices currently sit at their highest-ever levels in metropolitan Adelaide, there hasn't been a lot of movement in terms of sales volume.
First home buyers have long been shut out of larger markets in Sydney and Melbourne, but this latest cut will hopefully encourage more buyers to pick Adelaide's affordability as their first option.
Robert Larocca, CoreLogic RP Data auction market specialist, said recently that the positive impact of the rate cuts will take a few weeks to filter through.
"The positive impact of the rate cut will take a few weeks to be apparent on a national wide scale as volumes are still low,' he said.
"If the rate cut is to encourage a few more active buyers and sellers it will also take a few weeks to be obvious."
The Reserve Bank's decision creates an even strong outlook for Adelaide's property market, boosting buyers purchasing power and lifting confidence the state overall. If you're looking to take advantage of the newest rate cut, or have any questions about how it could impact your property portfolio, speak to your local real estate agent.