Summer is over and now that we’re entering the busy autumn selling season, our property markets are picking up and resuming the hectic pace we saw last year!
Last week, the Reserve Bank of Australia (RBA) met for its March meeting and as widely expected by analysts, decided to keep the official cash rate on hold at 2.0%. Whilst the RBA is not ruling out a further cut in rates this year, it looks as though the cash rate will remain at this level for some time.
Property markets are going strong, with auction clearance rates picking up around the country. For the week ending February 29, there were 1,327 auctions recorded in Victoria with a good clearance rate of 75%. In NSW, there were 872 auctions with a clearance rate of 73%, Queensland 175 auctions with a clearance rate of 58%, South Australia saw 118 auctions with a clearance rate of 73%, ACT had 72 auctions with a clearance rate of 70%, Tasmania had just 9 auctions with a clearance rate of 60%, NT had 10 auctions with a clearance rate of 63% and Western Australia held 47 auctions with a clearance rate of 44%.
Whilst last year saw some very rapid rises in home values, this month growth has been slower. Sydney home values increased by just 0.47%, Melbourne 0.30%, Brisbane & Gold Coast 1.30%, Adelaide 1.88% Darwin 0.40% and Hobart 2.85%. Perth and Canberra showed small declines in home values over the last month, with Perth showing a 1.13% decrease and Canberra 0.16%.
Many lenders have been making changes to their interest rates outside of the RBA cash rate movements. Recently we’ve seen small increases in interest rates on commercial property loans and investment property loans. However, interest rates remain very low overall and buying conditions look particularly good for owner-occupiers – great news if you’re a first home buyer or looking for your next home.
Remember, we’re here to support you with all your finance needs. If you’re thinking about getting into the market this autumn, then give us a call and we’ll help you to get pre-approval on a loan so you’re in a great position to buy. If you’re an investor, don’t be put off by any small rises in rates – we’re here to help you find the most suitable loan for your needs, so call us today.
Auction Results: www.realestate.com.au
Home Values: www.corelogic.com.au
MORTGAGE FOCUS | MARCH 2016
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
Fax: 07 3378 2069