PROPERTY MARKET ACTIVITIES: JULY 2017

//PROPERTY MARKET ACTIVITIES: JULY 2017

PROPERTY MARKET ACTIVITIES: JULY 2017

new financial year comic strip

As the new financial year kicks off, it’s a great time to start afresh. That could mean buying your first home, investing in property, or even refinancing your loan to a more suitable option. With the cash rate on hold and interest rates remaining low, now could be a good time to consider purchasing property.

INTEREST RATE NEWS

This month, the Reserve Bank of Australia (RBA) decided to keep the official cash rate on hold at 1.5 per cent, where it has been since August 2016. However, there has been plenty of movement on interest rates of late from the lenders.

Last month, the big four banks announced increases in rates on interest-only loans, in response to the Australian Prudential Regulator Authority’s crackdown on interest-only borrowing earlier this year. At the same time, the big four banks announced cuts to interest rates for owner-occupiers on principal and interest loans. With so many changes happening, it’s a good idea to get in touch to review your mortgage and future plans. We’ll compare the market and make sure your loan meets your financial needs and goals.

PROPERTY MARKET NEWS

Home values were back on the rise in Melbourne and Sydney last month, after the seasonally weaker month of May. In Sydney, home values increased by 2.21%, while Melbourne saw increases of 2.71%. Home values also increased in Perth (1.38%), Canberra (2.58%) and Hobart (2.77%). Darwin saw the biggest drop in home values, at -2.18%, while in Adelaide they fell -1.72%. Brisbane also saw a decrease of -0.46%.

The pace of home value growth eased over the second quarter of 2017. The quarterly data shows softer conditions in Sydney, with values gaining 0.8%, compared to 5% in the three months prior to March. Melbourne’s home values increased by 1.5% in the June quarter, slower than the 4.2% gain in the March quarter. Darwin (-5.2%), Hobart (-1.3%) Canberra (-0.4%) and Adelaide (-0.2%) saw values fall during the June quarter. In Brisbane, growth was modest at 0.5%, while Perth was up 0.1%.

Auction clearance rates remain relatively strong in the ACT, Sydney and Melbourne. For the week ending July 2, the ACT had a clearance rate of 76% for 36 scheduled auctions, while Victoria had a 72% clearance rate for 930 scheduled auctions. New South Wales saw a slowdown of auction clearance rates in June, but things appeared to be picking up last week. Of the 961 properties that went to auction in New South Wales, 71% were sold in the week ending July 2. In the Northern Territory, there was a 60% clearance rate for 13 scheduled auctions, while Tasmania only had 9 auctions and achieved a 60% clearance rate. South Australia held 89 auctions with a clearance rate of 59%. Western Australia had a 46% clearance rate on 47 scheduled auctions, while Queensland experienced a 45% clearance rate on 298 scheduled auctions.

The new financial year is providing an optimistic outlook, with interest rates likely to remain low for some time. It’s a fabulous time to talk to us about buying your dream home or an investment property. We would love to help you find a competitive home loan that meets your needs and goals, so please get in touch today!

INFORMATION SOURCES:

www.realestate.com.au/auction-results

www.corelogic.com.au

www.rba.gov.au

ARTICLE SOURCE:

FINANCE FOCUS | JULY 2017

The information provided in this page is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs. You should seek independent advice from your financial adviser before making any decisions.

AUSTRALIAN MORTGAGE AND FINANCIAL ADVISERS (AMAFA)

CONTACT INFORMATION

Phone: 07 3378 2056

Fax: 07 3378 2069

Email: info@amafa.com.au

2017-07-13T10:56:48+00:00