The Australian Reserve Bank Board's decision to maintain the official cash rate has provided a 'confidence boost' to the Australian property market, according to the Housing Industry Association (HIA).
Andrew Harvey, senior economist at the HIA, said residential construction has been slightly stifled by the "restrictive" level of mortgage and business loan interest rates.
According to the expert, the country's home building market is in need of an "extended period of interest rate stability" which will help to boost confidence and stimulate activity with regards to property transactions.
He explained: "Against this backdrop, and with building sector labour and materials more accessible than in periods of peak activity, we are seeing a lift in consumer interest for both new home building and renovations."
It comes after data published by Find a Property indicated that there was a 98 per cent jump in the number of people hunting property in Australia in January when compared with October.
Posted by Ravin Chatlani
