The Reserve Bank of Australia (RBA) has decided that official interest rates will remain at their record low of 1.75 per cent throughout June.
Last month (May) the RBA announced the rate cut, which followed 11 months of them remaining on hold previously, reports Domain.
Since May, mortgage rates have also been lower, which has helped to reactivate housing markets, alongside strong auction clearance rates in Sydney.
Auction market activity has also been showing an increase in other states throughout Australia, highlighting that the market is performing well across the board.
There has been an uplift too in the amount of residential investor activity, which experts are saying is a reflection of the potential property tax changes.
Recent GDP data from the Australian Bureau of Statistics (ABS) assessing the March quarter revealed that the activity in the housing industry was positive.
The ABS figures also showed that there are indications of a slight decline in house prices, which may be a concern for the RBA. However, property experts who took part in a Finder survey are firm in their belief that the industry will continue to show pleasing and strong growth over the next four years.
Building approvals in Australia saw an uplift over April, again according to information from the ABS. It highlighted that growth in this area is particularly strong with regards to houses in Melbourne and Sydney apartments - among other units.
Although rates are on hold for this month, the general feeling is that the RBA is going to cut them again.
It really remains to be seen what happens with regards to the property industry over the next quarter; a profitable winter season could mean a lot of positive changes in the Australian market, particularly if auction clearance rate continues to remain high.
