• REIWA commends interest rate drop

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    photo-aussie-moneyPresident of the Real Estate Institute of Western Australia, David Airey, has commended the Reserve Bank of Australia’s (RBA) decision to drop interest rates by 0.25 per cent and urged the banks to pass it on in full.

    “Consumer sentiment is weak and property sales have been sluggish for the start of the year. However, this drop in interest rates, along with falling petrol prices is a real boost to household finances," Mr Airey said.

    The Real Estate Institute of Australia has also welcomed the decision with President Neville Sanders saying the RBA Board had made a considered and accurate assessment of the property market.

    “The significance of the easing monetary policy is that housing affordability in Australia will improve further, however we need today’s cut to be passed on fully by lenders,” Mr Sanders said.

    The official interest rate is now 2.25 per cent, a record low, following one of the longest periods of interest rate stability.

    Mr Airey said he hoped the drop in interest rates would encourage more buyers to enter the market.

    “Housing affordability has improved a lot over the last year and with the increase in listings, home buyers have far more choice than they did two years ago.

    “This cut will typically save around $50 per month on a $300,000 mortgage,” Mr Airey said.