REIQ MEDIA RELEASE

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REIQ MEDIA RELEASE

  1. 1. 16 Thesiger Court, Deakin ACT 2600 Phone 02 6282 4277 I Fax 02 6285 2444 www.reia.com.au I reia@reia.com.au Media release Tuesday 7 February 2011Rate cut would have encouraged home buyersThe Reserve Banks decision to leave rates unchanged is very disappointing news for home buyers,according to the Real Estate Institute of Australia (REIA).“The latest Consumer Price Index (CPI) figures are well within the Reserve Bank of Australias (RBA) target zoneof 2-3 per cent and should have provided a clear indicator to cut rates. The RBAs Governor has even indicatedthat he expects inflation to fall further in the next quarter or two" said REIA president, Ms Pamela Bennett."A further cut would have assisted those who are currently paying off a mortgage and would have been theencouragement needed for first home buyers," she said.The REIAs Deposit Power Housing Affordability Report for the September quarter showed a very smallimprovement in housing affordability but REIA would like to see a greater change over consecutivequarters."We know that first home buyers are starting to return to the property market but another reduction wouldhave assisted in stimulating the lower end of the market and provided a ripple effect to those buyers tradingup ," said Ms Bennett. “Although just one component of the solution, lower interest rates are needed to reduce the proportion ofincome that Australians are spending on loan repayments in an effort to improve housing affordability,” MsBennett concluded.The Real Estate Institute of Australia (REIA) is the national professional association for real estateagents in Australia. For further information or interview opportunities, please contact:Pamela Bennett REIA President 0412 212 313Amanda Lynch REIA CEO 0419 123 862Rhiannon McClelland REIA Manager Communications 0421 422 919

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