PROPERTY MARKET ACTIVITIES – JANUARY

//PROPERTY MARKET ACTIVITIES – JANUARY

PROPERTY MARKET ACTIVITIES – JANUARY

Happy New Year! We hope you enjoyed the break and Santa was kind to you and your family this Christmas. Are you ready for another fantastic year in our property markets?

As the Reserve Bank of Australia will not meet until the first Tuesday in February for its initial rate meeting for 2017, there is no change to the official cash rate to report this month. However, whilst some analysts are speculating there may be another cash rate cut as early as next month, they are also suggesting there is little reason to expect the cut will be passed on to consumers by many lenders.

This is because lender’s rates are also linked to their actual costs, rather than RBA movements alone. In November and December of 2016, many lenders adjusted rates upwards slightly, particularly on fixed interest rate loans, with several more following in January. We can expect lenders to continue with this approach to rates in 2017 as they respond to global financial market movements and trends, as well as local conditions.

As expected for this time of year, activity in our property markets has slowed to a near standstill as people take time out to enjoy the holidays and fantastic summer weather with family and friends. For the week ending December 25, there were just 97 auctions in Victoria with a clearance rate of 74%, 89 in NSW with a clearance rate of 80%, 37 in SA with a clearance rate of 78% and in QLD 36 auctions with a clearance rate of 47%. Our smaller markets showed even less activity, with just 13 auctions in WA showing a clearance rate of about 80%, 14 auctions in ACT with a clearance rate of 90%, and just 1 auction in NT and 3 in Tasmania with no sales.

In contrast to this huge reduction in property market activity, home values continued to rise in many markets during December. In Sydney, home values increased by .91%, Melbourne 3.14%, Brisbane/Gold Coast .60%, Perth 1.39%, and Hobart 3.31%. Adelaide showed a decline in home values of 2.00% for the month, Canberra .26% and Darwin .10%.

Generally speaking, 2016 was a great year for home owners and property investors in terms of home value increases, with only Perth showing a small decline for the year. All other markets performed well, with Sydney showing the most substantial home value increase for the year at 15.46%, closely followed by Melbourne at 13.86% and Hobart at 11.24%. Home values in Canberra increased by 9.29%, Brisbane/Gold Coast 4.40%, Adelaide 4.23% and Darwin .93%.

With interest rates still very low and looking to remain that way for some time, conditions continue to look good for property buyers in 2017. We’re anticipating a very busy year, with plenty of housing stock available for buyers and good scope for further home value growth for home owners. Now is a great time to see us to talk about your plans and get ready for the year if you may be in the market to make a property purchase, or to get your annual home-loan-health check if you are a home owner, so please give us a call soon.

Enjoy the rest of the summer holidays!

Information Sources:

Auction: www.realestate.com.au

Home Values: www.corelogic.com.au

ARTICLE SOURCE:

FINANCE FOCUS | JANUARY 2017

We recommend that you seek independent financial and taxation advice before acting on any information in this article. 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.

AUSTRALIAN MORTGAGE AND FINANCIAL ADVISERS (AMAFA)

CONTACT INFORMATION

Phone: 07 3378 2056

Fax: 07 3378 2069

Email: info@amafa.com.au

2017-08-25T17:07:36+00:00