The official cash rate is to remain at 2 per cent for another month, following the Reserve Bank of Australia's (RBA) June announcement. The rate was lowered from 2.25 per cent last month, amid concerns that the national economy wasn't performing quite as well as it should.
This still remains the case, as RBA governor Glenn Stevens revealed that growth remains below its long run average. Nevertheless, monetary policy settings are getting to work, and there are high hopes that this will benefit other areas of the economy in the near future.
Housing is one sector that is already reaping the advantages of the all-time low cash rate. Borrowers are making the most of lower costs, and there's also the fact that construction activity is on the rise.
Chief economist at the Housing Industry Association Harley Dale explained: "Housing demand will also be assisted by this highly favourable interest rate environment, which is very important given the new home building sector is providing a vital boost to an otherwise under-performing domestic economy."
The April Australian Industry Group/Housing Industry Association Australian Performance of Construction Index revealed that the building sector could do with some good news at the moment. The index fell 3.1 points over the course of the month, resulting in a total reading of 47. Any result under 50 points towards a contraction in activity.
However, there are high hopes that the lower cash rate first brought into force in May will soon start to improve activity. This will not only increase the amount of available real estate in Box Hill, but also give the economy a much-needed boost.
Mark Edwards and his team of real estate agents in Box Hill have a knowledge of the local area like no other. We can help you find the property you have always wanted, no matter whether you are looking to buy or rent.