Although record-low interest rates mean now is an excellent time for people to buy Australian property, the Reserve Bank of Australia (RBA) has warned people to make sure they stay within their means.
The RBA noted that, amid the lowering of its benchmark rate, the country has seen house prices grow at a fast pace.
It said that although interest rates are low, home buyers and banks should still remain prudent with their lending. Home buyers should try to be realistic about their expectations in house price growth in the coming months.
Property experts have been questioning how the housing market is set to perform, having produced varied forecasts from booms to busts or simply stabilising. Additionally, there are fears that values will rise to a level where some will be priced out of the market.
Since 2011, the RBA has cut its rate several times. At present, it sits at 2.5 per cent, following its most recent cut in August.
Posted by Steve Douglas