It’s official that heading into the Easter break the Reserve Bank have decided to pause by leaving rates on hold at 3.6% at today’s board meeting. This reprieve, whilst it may be temporary, has been welcomed by mortgage holders everywhere.

Despite this, RBA governor Philip Lowe was not offering assurances that there won’t potentially be further rate rises to follow if required to tame inflation.

In a post board meeting statement he said “The board expects that some further tightening of monetary policy may well be needed to ensure that inflation returns to target. The decision to hold interest rates steady this month provides the board with more time to assess the state of the economy and the outlook, in an environment of considerable uncertainty.”

On the property front, lower stock levels continue to underpin prices, alongside a strong rebound in immigration, and tight rental markets.

On a positive note for home owners and potential sellers - Sydney saw the greatest lift in values out of all the capital cities in March with home prices rising .27%. Nationally, home prices increased for the 3rd consecutive month. Are we seeing a rebound in property prices perhaps? The pause is also likely to lift buyer sentiment. If supply continues to remain constrained, its hard not to see anything but upside for sellers at present.

Regardless, after 10 consecutive rate rises by the RBA this pause will be some welcome respite for many families with mortgages heading into the Easter break.

* This information is general in nature and not intended to be financial advice.
* Reach out to myself or my team at Meridien Realty for the best real estate assistance and expert advice on what’s happening in your local market. Whether you’re looking for a top selling agent or professional property managers to rent your property you can rest assured we’ve got you covered with the best advice.