Young Canberra couples were elated as the treasurer, Paul Keating, announced a reduction of official interest rates by 1 per cent to 10.5 per cent, The Canberra Times reported on this day in 1991. These couples benefited from the reaction of the banks and building societies to the announcement.
Subscribe now for unlimited access.
or signup to continue reading
Andrew Bates and Kirsten McCulley, a Canberra couple, were public service computer programmers with secure incomes. They were over the moon with the announcement and lauded the impact it would have on other couples. Bates said that the couple could pay off "the dream home a lot quicker".
Bruno Yvanovich, general manager of the Real Estate Institute of the ACT, also backed the announcement stating the falling interest rate was "definitely ... needed from the government to restore confidence in the market".
He goes onto say "demand is so strong that we don't have much stock to sell" and only "six months ago, builders were practically giving houses away - now they are selling like hot cakes".
Mike Fitzgerald, divisional manager of the Housing Industry Association, was also excited about the announcement and encouraged potential home buyers to "get in and buy now" due to Canberra's low rental costs and the shortage of stock in the home market.
He cautioned that there would not be a massive influx of people wanting to build homes as the unemployment rate was still high and recessionary talk was rife.
Since the turn of the year, Canberra's housing prices have not risen as quickly as other territories although it is expected to increase with time. Housing affordability, however, has become a hot button issue as it is the main driver for the cost-of-living crisis.
