The Australian property market would experience more growth if the Reserve Bank of Australia (RBA) held back on increasing interest rates, an expert has suggested.
David Airey, president of the Real Estate Institute of Australia (REIA), said that housing finance rates are remaining steady and not flourishing because of the increases made by the RBA.
His comments follow the publication of Australian Bureau of Statistics Housing Finance figures for September, which show a slight increase in the number of finance commitments for owner-occupied homes.
"These figures show the cumulative effect of six increases in official rates between October last year and May this year," Mr Airey said.
He went on to add that the figures question whether the "further tightening of monetary policy" at the RBA's last meeting was a wise decision.
Those seeking finance to buy a new property in Australia may be interested to learn that the government of Western Australia recently announced that 1,000 new homes will be constructed in the state by Christmas.
Posted by Steve Douglas
