The Real Estate Institute of Australia (REIA), commends the Reserve Bank of Australia (RBA) for its rate cut announcement and “accurate assessment of the property market”.
REIA claims the RBA Board has taken into account the economic headwinds Australia and the international community are experiencing.
“The significance of the easing monetary policy is that housing affordability in Australia will improve further,” REIA president Neville Sanders said.
He added that since the RBA started slashing the official interest rates down in late 2011, “the proportion of the median family income required to meet monthly loan repayments decreased 4.4 percentage points from 34.8% to 30.4%”.
Sanders also believes the latest rate cut will improve affordability in the housing market, amid concerns that it could have perverse effects on consumer and business confidence.
“A cut in the cash rate will be very important in boosting consumer and business confidence,” he said.