Wed 06 October 2010
BresicWhitney Market Wrap
The Reserve Bank of Australia (RBA) has defied market expectations and left the cash rate unchanged at 4.5% for the fifth month in a row. The reprieve for borrowers and home owners may be short lived with the likelihood of a November rate hike still high.
As we head toward the busiest time on the domestic real estate calendar, we expect yesterdays decision will be a positive for those in the first home buyers category. The prospect of higher interest rates will only create demand from renters in what is already tight rental market.