It’s hard to believe we’re already into November and Christmas is only weeks away! The spring property market is really heating up, with the number of auctions in our capital cities reaching a record high at the end of October. At the same time, rises in home values seem to have stalled and clearance rates are lower, so if you’re in the market to buy a property you may be able to score one that’s right on budget at auction. Interest rates are still very competitive, so why not call us now to talk about your plans?

Interest Rate News

The Reserve Bank of Australia (RBA) decided to keep the cash rate on hold at 1.5% again this month. It’s the 15th consecutive month with no rate change – the RBA last moved rates in August 2016, cutting the cash rate by 0.25 basis points. According to market analysts, it’s unlikely the RBA will make any move to adjust the cash rate at its final meeting for 2017 next month.

Property Market News

Home value increases slowed across the combined capital cities in October. Melbourne proved to be more resilient than Sydney, with dwelling values up 0.5% over the month, compared to Sydney, where they dropped -0.5%. Melbourne also saw stronger growth over the quarter, up 1.9% while Sydney’s prices fell -0.6%.

Dwelling values grew by 0.9% in Hobart in the month of October, and the city also saw the highest change in dwelling value growth over the quarter (up 3.3%). In Brisbane, values increased by 0.2% during the month of October, and 0.6% during the quarter. In Adelaide and Perth, there was no monthly change in dwelling values. Adelaide saw prices rise 0.1% over the quarter, while Perth’s prices fell -0.7% in the three months prior to October 31. Canberra saw prices fall -0.1% last month, but overall they increased 1.1 percent during the quarter.

Record auction numbers in October

Auction volumes across the combined capital cities reached record highs at the end of last month, according to CoreLogic. In the last week of October, the combined capital cities held 3,690 auctions, returning a preliminary auction clearance rate of 67.8%. Melbourne saw volumes reach their highest level on record, with 1,983 properties going under the hammer and 71.7% being snapped up!

The ACT also had a high clearance rate of 77% for 128 scheduled auctions. In South Australia, there were 163 scheduled auctions and 68% sold. New South Wales held 1,395 scheduled auctions, and achieved a clearance rate of 64%. In Tasmania, there were only six auctions, but 60% of properties sold. Half of the 60 properties that went to auction in Western Australia sold, while in the Northern Territory there were 10 scheduled auctions (44% clearance rate). Queensland had the lowest clearance rate for the week ending October 29 (43% for 361 scheduled auctions).

Now the Christmas shopping season has arrived, we know you’ll be busy buying gifts for your loved ones – so it might help to read our article this month about resisting the urge to splurge! Now is also a fantastic time to talk with us about your property purchasing plans, or to see us about a home loan health check, so please give us a call and we’ll be happy to help.Welcome to our November Newsletter

What a whirlwind month it’s been in the property world! The Federal Budget provided some exciting new opportunities for first-home buyers and downsizers.

Housing market conditions cooled slightly last month, while auction activity remained strong in Melbourne and Sydney, but quieter elsewhere. The good news is that there may be some fantastic bargains around the corner for buyers if dwelling values continue to drop!

Interest Rate News

This month, the Reserve Bank of Australia decided to keep the official cash rate on hold at 1.5 per cent. Interest rates have been edging higher in recent months, particularly for investors, but there are still some very competitive deals available! The introduction of the new bank levy from July 1 could cause interest rates to rise further, so speak to us and we’ll explain your interest rate options and whether it might be a good idea to lock in a fixed rate.

Federal Budget News

Last month’s Federal Budget introduced new measures to make it easier for first-home buyers to save a deposit, by allowing them to salary-sacrifice up to $30,000 into super and benefit from a reduced tax rate of 15 per cent. If you are a first-home buyer, talk to us about other changes that could affect you, such as NSW’s recent changes to stamp duty.

The government is tightening some of the rules relating to negative gearing claims. From July 1, all travel deductions to inspect, maintain or collect rent for an investment property will be disallowed. Plant and equipment depreciation deductions will be limited to outlays actually incurred by investors. The government introduced measures to increase housing supply, such as releasing Commonwealth land for housing development. New financial incentives were also announced to encourage over 65s to downsize, with the government making it easier for them to contribute up to $300,000 from the sale of their family home into super. If you’d like to know more about property-related announcements in the Federal Budget, please give us a call!

Property Market News

Dwelling values fell by -1.1% across the combined capital cities in May. The biggest drops were in Hobart (-4.8%) and Darwin (-3.5%), while Melbourne and Sydney also saw prices fall by -1.7% and -1.3% respectively. Perth’s housing values fell by -0.4% and Canberra’s dropped -0.1%. In contrast, Brisbane’s prices increased by 0.3%, while Adelaide’s rose by 0.8%. While there has been speculation we could be starting to see a property market correction, it’s important to note that May is seasonally weaker than other months – values have fallen during May in four of the past five years.

Auction activity remains strong in Sydney and Melbourne, but softer elsewhere. For the week ending June 4, there were 1145 scheduled auctions in New South Wales (76% clearance rate), while Victoria cleared 75% of the stock at the 1269 auctions. The ACT had 78 scheduled auctions and cleared 72% of the stock, while in South Australia there were 114 scheduled auctions (61% clearance rate). Things were quieter in Western Australia (34 scheduled auctions with a clearance rate of 47%), Queensland (43% clearance rate on 306 scheduled auctions) and the Northern Territory (33% clearance rate on 8 auctions). In Tassie, none of the 4 scheduled auctions resulted in a sale.

With so many changes happening in the property market, it’s important to seek expert advice about your home loan. We are on top of all the latest developments and can find the right home loan to suit your current and future financial needs. Please call us today!Welcome to our June Newsletter


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