Conditions are great for home buyers and borrowers! Are you ready to tackle all the excitement of our very busy Spring property markets?
Last month, the Reserve Bank of Australia (RBA) appointed a new Governor, Dr Philip Lowe. After his very first meeting as the RBA Governor, Dr Lowe announced the RBA would be keeping the official cash rate on hold at 1.50 per cent during October. But everyone was well ahead of Dr Lowe’s announcement after he made comments to the press about the lack of effectiveness of further rate cuts in stimulating economic growth when he was first appointed in September.
The RBA last cut rates in August, bringing the official cash rate to all-time lows. However the cut did not have the desired effect of reducing the level of the Australian dollar against other currencies that the RBA intended. Analysts now appear to be undecided regarding the prospect of further rate cuts this year and the RBA is taking a wait and see attitude before indicating its next move.
Spring is traditionally the busiest time of the year in Australia’s property markets, however Grand Final Weekend slowed the market for the last week of September, particularly in Victoria where there were only 133 scheduled auctions for the week ending October 02. However these auctions did achieve a very high clearance rate of 92%. The NSW market was a bit more active with 628 auctions achieving a clearance rate of 80%.
Elsewhere around the country, the QLD market had a lot of activity with 253 auctions, but the clearance rate was very low at just 36%. SA scheduled 47 auctions with a clearance rate of 75%, ACT had 50 auctions with a clearance rate of 72%, WA had only 15 auctions with a clearance rate of 33%, NT held 14 auctions with a clearance rate of 23% and Tasmania had only 5 auctions with a clearance rate of 25%.
With increased activity in the Spring property market, home values are also on the rise in most markets. Sydney saw a rise in home values of 0.81% for the month of September, Melbourne saw a rise of 2.30%, Brisbane/Gold Coast rose 0.22%, Adelaide rose 2.11%, Canberra 2.38% and in Hobart home values also rose by 0.14%.
In the north and west of the country, home values have been trending downward during the first 10 months of 2016. Darwin’s home values fell by 2.21% and Perth’s by 2.37% during the month of September alone. It should also be noted that rental rates are also showing a downward trend in these markets.
Interest rates are currently at all-time lows and following the RBA rate cut in August, lenders are offering some great deals for all kinds of property buyers. If you’re considering purchasing a property or refinancing an existing home loan, it is a great time to see us to discuss your plans or get loan pre-approval. If also a good time to talk to us if you’ve been considering a switch to a fixed rate product to lock in a low rate for a fixed term. Whatever your financing needs we’d love to help, so please get in touch 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.
Buying a property can be a very detailed and complicated process that takes a great deal of effort to complete successfully.
An interest-only home loan is a product that allows you to obtain a loan and only pay the interest for a set period of time, without paying off any of the loan principal.
Are you better off buying an established home or a new one?
It doesn’t matter whether you’re a first home buyer, next home buyer or a property investor, deciding between a brand new home and an established one is an important choice that every property buyer needs to make.
Impact Home Loans & Financial Services Pty Ltd / ABN: 42 156 376 135
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