North Queensland and Townsville home owners and buyers receive little relief from the Reserve Bank of Australia Board today with their cash rate announcement.
Australia’s Reserve Bank has acted on the cash rate as predicted by most reputable economists and retained rates on hold at 1.50 percent.
With inflation trending higher, a rate rise was unlikely with concerns about unfavourable employment figures and stable prices in global trading of oil while the federal budget was soon to be released.
Capital city property data was a major consideration of the RBA Board as values have increased almost 10 percent since May and August last year.
Recent housing data showing property prices in Sydney and Melbourne easing and causing increasing concerns about negative equity risks in the capital city markets.
Easing prices in the capital city markets, if sustained over longer periods, could be factors for the RBA to increase the cash rate later in 2017 or 2018.
In the meantime, rates are set to remain on hold unless the economy and jobs growth do not improve economists are predicting, a quarter of whom predict a rate reduction no less than 1.0 per cent.
From a Townsville and North Queensland perspective, a rate cut would have been welcome news for property owners and buyers to stimulate property market demand and bring a glimmer of hope that a rebound in sustained values are on the horizon.