The autumn property market is proving to be very busy and full of opportunities for home buyers and investors. We expect lower interest rates will stimulate the market even further, so talk to us about getting your finance in place now!
The Reserve Bank of Australia (RBA) met for its May meeting last week and decided to cut the official cash rate by 25 basis points, bringing it to just 1.75%. The move took many forecasters by surprise and brings the official cash rate to an all-time low!
The RBA decided to make the move in response to low inflation figures and a strengthening Aussie dollar. Forecasters do not anticipate another cut in the immediate future, however the RBA is likely to reserve this option in case it feels the economy requires further stimulation moving forward.
This is great news for property owners and buyers across the country. Property markets have been performing well, with plenty of housing stock available to buyers. Auction numbers have been quite high across all states, however clearance rates are not as high as last year for most markets, except for Sydney and Melbourne where they reached 74% for the last weekend in April.
Growth in home values has been good across all cities during April, except for Hobart where home values declined by 5.33%. Sydney home values increased by 2.40%, Melbourne 1.07%, Brisbane/Gold Coast 1.81%, Adelaide 2.03%, Perth 0.47%, Darwin 2.53% and Canberra 1.21%.
Following the RBA cash rate cut last week, lenders have already started to reduce interest rates, particularly on variable interest rate products for owner-occupier purposes. However, we are also seeing rate cuts across other loan product classes, so if you are looking to refinance, fix your interest rate or invest, talk to us and we’ll shop around to find the most competitive rate for your needs.
If you already have a home loan, please remember that when rates are on the move, it’s wise to check with your mortgage broker to ensure you’re still getting the best deal available for your needs. We don’t charge for a home loan health check, so please give us a call today!
KEITH MARSHALL | DIRECTOR
AUSTRALIAN MORTGAGE AND FINANCIAL ADVISERS
MORTGAGE FOCUS | MAY 2016
Auction Results: realestate.com.au
Home Values: corelogic.com.au
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