Property owners and small businesses can breathe a sigh of relief at the start of the new financial year as the Reserve Bank of Australia (RBA) has opted to keep the cash rate steady at 4.10%.

Dr Philip Lowe, Governor of the RBA said, “Interest rates have been increased by 4 percentage points since May last year. The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so.

“In light of this and the uncertainty surrounding the economic outlook, the Board decided to hold interest rates steady this month. This will provide some time to assess the impact of the increase in interest rates to date and the economic outlook.”

Angus Raine, Executive Chairman, Raine & Horne, welcomed the reprieve, stating that with inflation figures looking much healthier, the RBA will hopefully take their foot off the “interest increase pedal.”

“It’s great news. People - mum and dad Australians and small business owners can now take a shorter, medium, and longer-term view on what they’re planning to do with their Australian real estate,” he said.

“Listings in the market are just at an all-time low. So, there must be a shakeout, whether for positive reasons or not so positive; it means there could be opportunities for buyers out there.”

Based on the most recent data from Raine & Horne, listings across Australia were down nearly 16% in June compared to the corresponding month in 2022.

Angus emphasised that regardless of whether the RBA decides to maintain a long-term hold on or raise the cash rate, the Australian real estate market will continue to defy economic challenges. This resilience is evident in the performance of CoreLogic's national Home Value Index, which serves as a comprehensive indicator of housing values across the country. Since stabilising in February, the index has experienced a notable increase of 3.4%, showcasing the market's strength.

On the other hand, savvy buyers are growing in confidence with the number of groups attending open inspections has risen by nearly 22% in June compared to the same month in 2022, underscoring the robust demand for real estate. Moreover, auction clearance rates currently stand at approximately 74% nationwide, significantly higher than the figures recorded during the previous winter. “These statistics further highlight the positive momentum and buoyancy of the real estate sector,” Angus said.

“These numbers also debunk the commonly held belief that colder months and rising interest rates dampen the real estate market.”

For all your real estate sales and property management needs, contact your local Raine & Horne agent today.