First home buyers who have been holding off buying Belconnen real estate may now have been given the push they needed, as the cash rate was reduced by 0.25 per cent earlier this week (May 7).
The Reserve Bank of Australia is said to have made a "sensible decision" in lowering the official cash rate to an all-time low of 2.75 per cent.
President of the Real Estate Institute of Australia (REIA) Peter Bushby explained that there were plenty of reasons why a cut was needed – not least for the sake of the national property market.
He explained: "If the banks do pass on the 0.25 percentage points cut in full, the average loan repayment will be $481 per week.
"This is $115 per month less compared to the figure recorded a year ago and will substantially ease the mortgage stress on Australian homeowners."
The REISA president noted that housing affordability will improve for many people, as the proportion of the average family income needed to meet loan repayments falls from 30.4 to 29.7 per cent.
Data from Australian Property Monitors recently showed that affordability had improved throughout Canberra and surrounding area, with house prices falling 0.4 per cent in the three months to March.