The Reserve Bank of Australia kept interest rates on hold at 2.5 per cent at its August Board meeting today.
REINSW President Malcolm Gunning said the property industry has seen 12 months of stable interest rates, which has helped rejuvenate the market and underpin development activity in Sydney.
“It’s a year since the RBA last cut interest rates and in that time we have seen a return to positive sentiment.
“While these record low interest rates have been welcomed by consumers, we must once again caution mortgage holders that the fairytale will eventually end. It is important not to over-commit yourself and be prepared for future rate rises.”
The official cash rate has fallen 225 basis points since November 2011, with the RBA cutting interest rates twice in 2013 in May and August.
The RBA will next meet on Tuesday, 2 September 2014.
For further information or to arrange an interview with REINSW President Malcolm Gunning please contact Helen Hull at firstname.lastname@example.org or 0419 642 961.