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Medium-term stability predicted for OCR

By Louise Morrin

Buyers of real estate in Carlton have benefited from the two per cent cash rate since May, but the question on everyone's lips at the moment is how long it will last for.

Well, there's good news from the Real Estate Institute of Australia (REIA), as its president Neville Sanders predicts that there could be some stability in the medium term at least. He made his forecasts after the latest Consumer Price Index results were released, which were below the Reserve Bank of Australia's target zone.

There are also various other factors at play in the market, as the REIA noted a rise in investor activity. This had led to more subdued rent increases, potentially as more investors take advantage of access to loans in the low cash rate environment.

"The increase in the past 12 months in Sydney at 2.5 per cent was the lowest yearly increase since the September quarter of 2006," noted Mr Sanders.

Investors in the Harbour City may find they have more properties to choose from at the moment, as the latest Housing Industry Association (HIA) figures point to an upswing in building activity. New South Wales was named the number one state for construction, with detached properties proving especially popular.

Multi-unit dwellings have also seen strong levels of construction over recent months, adding to the options available to anyone buying Carlton real estate.

The HIA indicated that attention must now turn to making sure people have access to the finance they need to secure their next home. If the official cash rate (OCR) continues to remain low for some time, it makes sense to ensure that this is the case.

Do you need help finding your dream home? Ray White Carlton has years of experience in the local market and could be just what you need to realise your property ownership ambitions.

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