There are many upsides to owning real estate in Adelaide. From the wide array of cultural pursuits to the affordability of homes in the South Australian capital, the city offers investors and homebuyers alike a plethora of benefits. If you were after another reason to purchase a slice of property in this great city, you might find it a little easier to repay your mortgage in the future.
The Real Estate Institute of Australia (REIA) is predicting steady interest rates in the face of stable inflation, which could give homebuyers the confidence they need to make property in Adelaide their first choice. Following the release of the most recent consumer price index results from the Australian Bureau of Statistics (ABS), REIA said the outlook for interest rates is looking positive.
"With inflation under control combined with a slow down in housing finance, it's reasonable to expect that the RBA Board will not be increasing interest rates in the medium term, providing a stable outlook for home buyers," said CEO Amanda Lynch in an April 22 statement.
The index only rose marginally in the March quarter, posting a 0.2 per cent increase and a 1.3 per cent climb over the 12 months to March. The falling cost of fuel has been a significant boost, with the the price index dropping an 12.2 per cent over quarter alone. In fact, the price has plummeted an astounding 22.5 per cent over the year as whole, a point that has enabled the RBA to keep interest rates consistently low.
Adelaide has remained an affordable option across the board, with the city's price index crawling upwards by only 0.1 per cent over the March quarter, and just 1.1 per cent over the year to March, according to the ABS.
The Reserve Bank of Australia had noted that inflation was expected to remain under control over the next year or so at its April board meeting, which could signal a fairly similar official cash rate announcement in May.