Interest rates on hold at last

The Reserve Bank of Australia (RBA) announced on Tuesday afternoon, April 4 at 2.30pm that interest rates would remain unchanged at 3.6%.

This may or may not be the peak in interest rates as the RBA seeks to wait and see the impact of the fastest rate rises in a generation from May 2022 to March 2023.

The RBA noted inflation was still high but peaked in Australia and globally recently. It also noted the banking systems issues in the United States and Switzerland. While the RBA believe our banks are strong and the same issues won’t happen here, it is still concerning.

What does this mean for real estate?

I have been reporting for the past few weeks that buyers have started to return to our market and especially to those well-presented/renovated properties priced appropriately. It is expected that this should continue now that the RBA has paused the current rising of interest rates.

Therefore, prices should continue to stabilise and may even start rising in the short to medium-term should the RBA continue this stance for coming months.