fbpx

It’s been an exciting few months in the property world, with plenty of chatter about a potential market rebound. Back-to-back interest rate cuts, looser lending conditions and increased confidence following the May federal election have seen buyers returning to the market. In July, five of the eight capital cities recorded a slight rise in dwelling values, so if you’re a prospective buyer, now might be a good time to dive in and seize the moment.

Interest rate news

At its August meeting, the Reserve Bank of Australia (RBA) decided to leave the official cash rate on hold at 1% pa. The decision follows rate cuts in June and July. The majority of economists believe there will likely be another cut later in the year to 0.75% pa.

Most lenders have adjusted their interest rates to reflect recent cuts by the RBA, but it’s still worth shopping around. Some lenders are passing on bigger discounts than others.

Home value movements

Housing values appear to be stabilising, with five of the eight capital cities recording a modest rise in value in July. In Sydney, prices increased by 0.22%, while Melbourne saw values rise by 0.18% during the month. Values also climbed in Brisbane (0.24%), Hobart (0.27%) and Darwin (0.42%). Perth, Adelaide and Canberra all saw prices fall (by 0.53%, 0.34% and 0.32% respectively). In other news, capital city auction markets recorded the highest preliminary clearance rate in over a year (70.6%) in July.

Property market activity

* Monthly Home Values figures as at July 31, 2019

* Australian auction results, clearance rates and recent sales for the week ending August 4, 2019

Gearing up for a Spring property purchase?

If you’re in the market for a new home or investment property this Spring, we can line you up with the right finance for your needs. Contact us to arrange pre-approval today!

Sources:
https://www.realestate.com.au/auction-results/
https://www.corelogic.com.au/research/monthly-indices
https://www.corelogic.com.au/news/capital-city-auction-markets-record-highest-preliminary-clearance-rate-over-year-reaching-706

Self-Managed Super Fund Property Investment Rules

A growing number of Australians are showing interest in self-managed super fund rules. Based on the latest information released by the Australian Taxation Office (ATO), there were 593,000 self-managed super funds (SMSF) in Australia in June 2020. This represents a 3%...

read more

How Much Could I Save By Refinancing?

“How much could I save by refinancing?” This is a question that seems to be on a lot of homeowners’ minds lately. With news reports creating ongoing speculation about when interest rates will start rising, it seems many mortgage holders are choosing to...

read more
Spread the love