The Real Institute of Australia (REIA) feels confident that home buyers are responding to the rate cuts from the Reserve Bank of Australia (RBA).
Based on statistics from the Australian Bureau of Statistics (ABS), which show that the number of owner occupied home finance commitments have risen over the past few months, it suggested that consumers were being drawn into the market. However, it said that first time buyers were still not buying into the market.
President of the RBA, Peter Bushby, said: "It is encouraging to see buyers responding to the interest rate cuts of 2012."
REIA has been in favour of the RBA's rate cuts, saying that they are necessary for spurring activity in the property market. This is something that the federal government was hoping to do to make up for the decline in mining investment.
The institute recently welcomed the RBA's decision to lower rates to 2.75 per cent, saying that this was the "sensible thing" to do.
Posted by Ravin Chatlani