Strong employment growth and further signs of a turnaround in established housing markets in Sydney and Melbourne are reasons the Reserve Bank has chosen to leave interest rates on hold for now. The move will give previous cash rate reductions time to absorb into the economy.
Data from the Australian Bureau of Statistics revealed that the unemployment rate fell to 5.2% in September. While the rate has remained steady at around 5.25% over recent months, it is expected to remain around this level for some time, before gradually declining to a little below 5% in 2021.
In other positive news, Chief Executive Officer of Mortgage Choice, Susan Mitchell says: “The property market continues on its road to recovery, with the CoreLogic Hedonic Home Value index revealing that national dwelling values rose for the fourth consecutive month in October. The growth, which until recently had been limited to Sydney and Melbourne, was more widespread over the month of October with seven of the eight capital cities recording gains”.