The Reserve Bank of Australia (RBA) has decided to keep the cash rate at 2.5 per cent for November.
RP Data national research director Tim Lawless said the decision to hold the cash rate steady came as no surprise.
“From a housing market perspective, the current rate setting is clearly having the intended effect of encouraging more buyers into the housing market, stimulating new housing construction.
“Transaction numbers are close to 20 per cent higher compared with a year ago and dwelling values across our combined capitals index have risen by 7.9 per cent over the past 12 months,” he said.
Mr Lawless dismissed any concerns house prices were growing too fast at the current rate setting.
“The RBA has, on several occasions now, stated they are comfortable with the level of capital gains in the housing market. In fact, the current rate of growth is well below the highs achieved over previous growth cycles and dwelling values across every capital city apart from Sydney remain below their previous peaks,” he said.
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