PROPERTY MARKET UPDATES | SEPTEMBER 2018

//PROPERTY MARKET UPDATES | SEPTEMBER 2018

PROPERTY MARKET UPDATES | SEPTEMBER 2018

The busy Spring selling season has kicked off and that means an action-packed few months ahead in our property markets. If you’re planning on buying a home, get ready to negotiate! With auction clearance rates and property prices on a downward trend, you’ll have the advantage over vendors feeling the pressure to sell. Here’s our latest update to get you ready for the action.

Read Related Article: Property Market Updates | August 2018

Read Related Article: Property Market Updates | July 2018

White flower petals on branches

INTEREST RATE NEWS

At their September meeting, the Reserve Bank of Australia left the official cash rate unchanged at 1.5%. However, Westpac raised their variable home loan rates out-of-cycle in the last week of August, with ANZ and Commonwealth Bank following.

Despite these rate movements from the big lenders, competition remains strong and many lenders are advertising special offers on new loans to win market share. Recently, we’ve seen several lenders reduce interest rates on fixed rate loans, and some are even discounting variable rates for new customers.

PROPERTY MARKET UPDATES

In August, we saw home values continue to slide across many markets. According to CoreLogic, prices dropped -0.38% in the month to August 31 across the combined five capital cities (Sydney, Melbourne, Brisbane, Adelaide and Perth).

The biggest decline was in Melbourne, where prices fell -0.64%. In Perth, values dropped 0.54%, while Sydney recorded a monthly change of -0.27%. The falls were not as steep in Brisbane – the monthly change was -0.15% and in Hobart they were just -0.13%. Adelaide recorded growth of 0.30% over the month, Darwin’ home values rose marginally at 0.09% but Canberra was the winner with price gains of 0.54% for the month.

Homes are staying on the market longer and auction volumes remain lower than this time last year. For the week ending Sunday September 2, the following results were recorded:

 SCHEDULED AUCTIONS CLEARANCE RATE
Victoria 879 60%
New South Wales 803 58%
Queensland 267 33%
South Australia 83 61%
Australian Capital Territory 58 63%
Western Australia 30 42%
Norther Territory 3 33%
Tasmania 5 33%

Out-of-cycle interest rate rises, falling auction clearance rates and stalling property prices have turned conditions in favour of property buyers this Spring. If you’re interested in making a purchase, now is the time to see your broker about a pre-approval on your home loan – which will put you in a great position to negotiate on the property you want. If you’re concerned about how the recent rate rises may affect you, please ask for a free home loan health check. Your broker is here to compare the market and find the right loan for you. Please get in touch today.

Sources:

https://www.realestate.com.au/auction-results/ 

https://www.corelogic.com.au/research/monthly-indices

ARTICLE SOURCE:

FINANCE FOCUS | SEPTEMBER 2018

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

2018-09-14T13:11:39+00:00