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Rate hold 'good' for property

Rate hold 'good' for property

The decision of the Reserve Bank to maintain interest rates is expected to ensure a strong property market for the next year.

The decision of the Reserve Bank to maintain interest rates is expected to ensure a strong property market for the next year, claims leading real estate experts.

Reserve Bank governor Glenn Stevens suggested that cash rates will stay at a 60-year low of 2.5 per cent for the foreseeable future and could increase stability in the sector.

A total of ten economists surveyed by finder.com.au all forecast that rates would remain on hold - with the majority predicting they will remain the same until the end of 2014 or the start of 2015.

Janusz Hooker, deputy chairman of real estate agency L.J. Hooker, believes interest rates will remain unchanged.

"A projected period of stability for rates during 2014 will boost buyer confidence particularly in markets which have not been performing as strongly and will keep up the momentum in others," Mr Hooker said.

It is expected the low interest rate could attract more people in the country to step on to the property ladder in the near future.

Posted by Steve Douglas

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