With winter on the way out, now could be a great time to score a bargain in the property market, as some buyers may still be in hibernation mode and traditionally, there is less competition at this time of year.

Property numbers are likely to pick up later this month and into early September, with spring tending to be a more popular time to sell. The cash rate remains on hold and interest rates are low, so why not seize the moment and purchase that dream property you’ve been looking for?

Interest Rate News

This month, the Reserve Bank of Australia decided to keep the official cash rate on hold at 1.5%. Meanwhile, lenders continue to make rate moves to encourage interest-only borrowers to switch to principal and interest loans.

The Australian dollar soared after last month’s RBA meeting, following media speculation the RBA wanted to raise interest rates to 3.5%. However, the RBA has since commented they are not expecting to make any cash rate movements until late 2018. Overall, interest rates are still low and there are some great opportunities for buyers, investors and those looking to refinance!

Property Market News

The average monthly home value growth across Australia’s capital cities was fairly slow during July, only increasing 1.45%. In Melbourne, home values beat the average, increasing by 3.12% and Canberra also performed well, with home values increasing by 2.36%. In Adelaide home values rose a marginal 1.07% while in Hobart the increase was just 0.87%. Other cities saw marginal decreases in home values for July, with Perth showing the largest fall in home values of 1.32%.

Auction activity remains quite strong in Victoria, New South Wales and Queensland. For the week ending July 30, Victoria had 1002 auctions and a clearance rate of 77%. New South Wales had 838 auctions with a clearance rate of 67% and Queensland, 367 auctions with a clearance rate of 47%. In other states, activity was not as brisk, with the ACT only holding 47 auctions with a clearance rate of 74%, South Australia 87 auctions with a clearance rate of 63%, Western Australia 30 auctions with a clearance rate of 29%, Northern Territory 10 auctions with a clearance rate of 17% and no auctions were registered for Tasmania – and there were very few throughout July.

With spring just around the corner, now is a fantastic time for a fresh start, so why not make the most of the low interest rates? Whether you’re purchasing a home or an investment property, or are considering refinancing, we’d love to help! We’ll compare the market and find you a loan that suits your financial circumstances and goals. Please get in touch today!Welcome to our August newsletter

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!


Copyright 2016