Last month the RBA moved the official cash interest rate up to 6.5% – the highest level in 11 years.
“Homeowners are only just adjusting to last month’s rise so this announcement is very much a relief,” REISA President Mark Sanderson said.
“The housing market in South Australia is moving confidently at the moment but any further rises in interest rates could start to squeeze out some buyers.”
Commenting on housing affordability, Mr Sanderson said SA’s position had slightly decreased over the past 12 months but noted that it was still one of the best in Australia.
“According to June quarter statistics released last week, South Australians now need 33.2% of their family income to meet loan repayments compared to 30.1% this time last year,” he said.
“This is still the best percentage in Australia behind the Northern Territory and ACT and much better than the national average of 36.2%.”