Head of Harcourts for South Australia Greg Moulton says that the indication from the Reserve Bank governor Glenn Stevens that the low cash rate is unlikely to change any time soon, will end up in buoyant real estate sa for 2014. “Maintaining the official cash rate at 2.5% is fab news for investors, home owners and first house buyers of real estate SA,” asserts Mr Moulton.

Moulton continues, “A low official cash rate and relative stability in interest rates enables everyone to plan in advance and gives certainty to real estate sa decisions.”Moulton goes on to assert that a period of stability for 2014 will be a boost for purchaser confidence, particularly where South Australia real-estate has not been performing so strongly, and equilibrium will keep up the momentum in other real-estate SA markets that are already performing well. The governor of the Reserve Bank has to act in the best interest of the Australian economy and by leaving the official cash rate unchanged, the Reserve Bank is providing confidence to property sa in the short to medium term.

Moulton claims that by indicating that rates will remain low through 2014 also shows the Reserve Bank is supporting solid activity in South Australia, “The SA real estate market is intrinsically interlinked to the local South Australian economy, and particularly the Adelaide economy, due to small business owners drawing down on capital gain from their home and re-investing it into their business. “

The challenge for the Reserve Bank is to balance the good health of the economy with first home purchasers who are trying to get a foot in the door of property. Moulton points towards new stats out showing that first home purchasers make up just 9.9% of all mortgages issued in February and asserts that first house buyers of real estate sa are still much on the boundary of the property market, “First house buyers of real estate are actually having to make some compromises or come up with some leading edge paths to access capital. “

Moulton says that the reports for first home buyers in Adelaide is that cost is a controversy all over Australia, he claims that the other side of the coin for first house buyers of property in South Australia is that once they've got a foot in the door of the real estate market, then they are going to be pleased with property price growth.

Harcourts Soutgh Australia offer SA real estate for sale, land and homes for sale, rentals and commercial leasing, rural property sales, lifestyle real estate and business sales right across South Austrailia.

Solid Activity Envisioned For Real Estate SA In 2014 is a post from: WiredWriter