Autumn has arrived and as the weather cools, property markets around the country are starting to heat up. Auction numbers and clearance rates are a bit low for this time of year, but private home sales are going along quite strongly. Nevertheless, home values are continuing to fall in many areas, and if you’re in the market to buy a home at a bargain price, there are plenty of houses and units up for sale.
Read Related Article: Property Market Updates | February 2019
Read Related Article: Property Market Updates | January 2019
INTEREST RATE NEWS
The Reserve Bank of Australia (RBA) decided to keep the official cash rate at 1.5% during its March meeting. Concern about the impact of the declining housing market on our economy has led to speculation by analysts about the RBA cutting rates by up to 50 basis points (or half a percent) by mid-2020. But right now, it’s a wait and see game and according to the RBA, rates could go either way.
PROPERTY MARKET ACTIVITY
When property prices are stagnant or falling, conditions tend to favour buyers and vendors are more likely to choose a private sale over an auction to achieve their price. As a result, the number of auctions and clearance rate figures are decreasing as private sales numbers rise. The table below provides a snapshot of the property market at the end of February.
|All Dwellings||Private Sales||Auctions / Clearance Rate||Monthly Home Values|
|VIC||940||669 / 56%||– 1.00|
|NSW||1,174||391 / 69%||– 0.97|
|ACT||64||59 / 54%||– 0.19|
|QLD||741||138 / 33%||– 0.25|
|WA||371||12 / 42%||– 1.46|
|NT||18||7 / 14%||– 1.67|
|TAS||197||4 / 50%||0.82|
|SA||311||57 / 58%||0.04|
HOME VALUE MOVEMENTS
According to Economist, Cameron Kusher at CoreLogic, “…it is looking inevitable that dwelling values will fall further over the coming months.” This is great news for home buyers and property investors who have been waiting for a more favourable time to get on the property ladder.
Some areas are holding value better than others and it pays to do your research before putting down a deposit. The biggest declines in home values over the last month have been in Darwin where prices fell 1.67% and in Perth where they fell 1.46%. As expected, ‘market corrections’ in Melbourne also brought values down by 1% and in Sydney, 0.97%.
Changes to home values were less dramatic in other areas, with regional centres holding value quite well. Brisbane/Gold Coast home values declined just 0.25%, and Canberra 0.19%. However, home values were up in Adelaide by 0.04% and in Hobart by 0.82%.
FINANCE FOCUS | MARCH 2019
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)
Phone: 07 3378 2056
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