september
Spring is here and it’s also the start of the busiest time of year for our property markets! Auction activity is already heating up in our largest capital cities – are you ready for the rush?

At its September meeting last week, the Reserve Bank of Australia (RBA) decided to keep the official cash rate on hold at 1.50 per cent. The decision came as no surprise to analysts as the RBA cut the cash rate by 25 basis points just last month, bringing it to all-time lows.

Positive economic growth figures for the June quarter of 3% combined with improved jobs and salary growth data, indicate the RBA’s easing measures are starting to have the desired effect. Whilst the RBA would prefer the Australian dollar to be weaker against other global currencies in order to stimulate growth in our export markets, the US Federal Reserve is tipped to be considering an interest rate rise at their September 20 meeting this month. This could potentially create a downward trend in our dollar, eliminating the need for further rate cuts from the RBA this year.

Following last month’s RBA rate cut, lenders have been reducing interest rates on a wide variety of owner occupier home loan and property investment loan products. However, some have only passed on part of the rate cut, which prompts us to motivate you to check your interest rate with us to see if you still have the most competitive loan product for your needs!

Activity in our largest property markets is already picking up after the Winter slowdown. Victoria held 826 auctions during the week ending September 4 and achieved a clearance rate of 79%. NSW also had a big week with 715 auctions and an 84% clearance rate. Other markets were slower to respond to the arrival of Spring, with QLD holding 135 auctions with a clearance rate of 58%, SA 73 auctions with a clearance rate of 81%, and ACT had 76 auctions with a clearance rate of 78%.

The Perth and WA property market has been quite weak for some time and the trend is expected to continue during 2016. For the first week of Spring only 26 auctions were held and they only achieved a clearance rate of 17%. NT and Tasmania have also been slow to get started, with NT holding just 6 auctions with a clearance rate of 40% and Tasmania holding 7 auctions which achieved no sale.

Home value movements were very conservative this month, with Sydney achieving an increase of 1.44%, Melbourne 1.49%, Brisbane/Gold Coast 0.47%, and Perth 0.20%. Larger gains were seen in Darwin at 4.07% and Canberra 2.77%. Adelaide saw a slight decline in home values of 0.96% and Hobart’s home values fell by 0.88%.

Many of you in the market to purchase a property this Spring have already talked to us about arranging pre-approval on your home loans. If you haven’t called us yet, pick up the phone and get onto it so you don’t risk missing out on the home of your dreams during the Spring rush! Rates are great following last month’s RBA cut so it’s also a good time to discuss your refinancing plans, fix your interest rate or get a home loan health check on your existing loan. Give us a call today!

The autumn property market is proving to be very busy and full of opportunities for home buyers and investors. We expect lower interest rates will stimulate the market even further, so talk to us about getting your finance in place now!

The Reserve Bank of Australia (RBA) met for its May meeting last week and decided to cut the official cash rate by 25 basis points, bringing it to just 1.75%. The move took many forecasters by surprise and brings the official cash rate to an all-time low!

The RBA decided to make the move in response to low inflation figures and a strengthening Aussie dollar. Forecasters do not anticipate another cut in the immediate future, however the RBA is likely to reserve this option in case it feels the economy requires further stimulation moving forward.

This is great news for property owners and buyers across the country. Property markets have been performing well, with plenty of housing stock available to buyers. Auction numbers have been quite high across all states, however clearance rates are not as high as last year for most markets, except for Sydney and Melbourne where they reached 74% for the last weekend in April.

Growth in home values has been good across all cities during April, except for Hobart where home values declined by 5.33%. Sydney home values increased by 2.40%, Melbourne 1.07%, Brisbane/Gold Coast 1.81%, Adelaide 2.03%, Perth 0.47%, Darwin 2.53% and Canberra 1.21%.

Following the RBA cash rate cut last week, lenders have already started to reduce interest rates, particularly on variable interest rate products for owner-occupier purposes. However, we are also seeing rate cuts across other loan product classes, so if you are looking to refinance, fix your interest rate or invest, talk to us and we’ll shop around to find the most competitive rate for your needs.

If you already have a home loan, please remember that when rates are on the move, it’s wise to check with your mortgage broker to ensure you’re still getting the best deal available for your needs. We don’t charge for a home loan health check, so please give us a call today!

We recommend that you seek independent financial and taxation advice before acting on any information in this newsletter. It contains general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply. Information sources: Auction results: www.realestate.com.au. Home values: www.corelogic.com.au

Sincerely , Element Finance


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