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The decision by the Reserve Bank of Australia to leave interest rates at three per cent has been welcomed by the Real Estate Institute of South Australia (REISA).
According to the latter organisation's president, Greg Moulton, the inaction is a boost of confidence to the real estate sector, saying that the low interest rates are fostering growth.
He explained: "Of course a further cut to rates would be welcome, but the reality is, our current interest rate levels are very low and with this expected to continue for some time, people are really starting to turn back to property as an investment decision.
"After a tough few years, it is good to see a spring in the step of the market a little more."
Mr Moulton added that the recovery will be slow and steady, with small increases aiding in boosting the market.
However, Peter Jones of Master Builders Australia said that recent housing approval figures warrant a cut in the official cash rate, suggesting that the timidity of new homebuyers when it comes to investment is too apparent.
Mr Jones added that in addition to any movement by the RBA, government policy needs to assist in fostering growth in construction. He explained that as the mining boom comes to an end, the building industry will be needed to pick up the slack.
