SA: SA Real Estate body welcomes no change in interest rates

AAP General News (Australia)
04-07-2004
SA: SA Real Estate body welcomes no change in interest rates

ADELAIDE, April 7 AAP - The Reserve Bank's decision to leave interest rates unchanged
was welcomed today by the Real Estate Institute of South Australia.

Institute chief executive officer Joyce Woody applauded the bank's decision to leave
the official cash rate at 5.25 per cent, where it has been since December, leaving standard
variable home loan rates at about 7.07 per cent.

"The previous two rises have steadied the market in South Australia and a further rate
rise, this early on, would have placed too much pressure on homebuyers," Ms Woody said.

She said federal and state governments remained concerned at falling rates of first homebuyers.

"We strongly believe that the state government needs to implement a sustainable incentive
to encourage new buyers into the market," Ms Woody said.

"Plus, bracket creep is also affecting homebuyers with stamp duty rates rising at rates
disproportional to house price rises.

"As the population ages, governments need to ensure that their policies encourage financial
independence and home ownership is an essential element in achieving this."

AAP sl/drp

KEYWORD: RATES SA

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