Spring has well and truly sprung and we are supercharged for a bumper season in the property world. Dwelling values have been creeping up in many markets and auction clearance rates have been higher recently too. Interest rate reductions and changed lending rules have fuelled increased buyer activity, though stock volumes remain low. Overall, the housing recovery looks set to continue.

Interest rate news

At its September meeting, the Reserve Bank of Australia (RBA) decided to leave the official cash rate on hold at 1% pa. The move follows rate cuts in June and July.

While this month’s decision was widely anticipated, economists say there could be more cuts by the end of the year, potentially starting in October. Recently we’ve seen some lenders slash fixed interest rates on both owner-occupier and investor loans.

Given rates are on the move, now is the time to review your finance. It may even be worth considering fixing your home loan – speak to us about your options!

Home value movements

Property prices are continuing to rise, up 1.03% across the combined 5 capital cities in August. Prices in Sydney and Melbourne continue to trend higher. Sydney recorded a month-on-month change of 1.57%, while Melbourne’s property values grew by 1.40%. In Canberra, prices increased by 0.79%, while in Hobart they rose by 0.51%. Brisbane saw modest growth (0.2%), while Perth and Adelaide experienced falls of 0.51% and 0.24% respectively.

In recent weeks, we’ve seen auction clearance rates soar in many markets. In fact, auctions across Australia’s capital cities reached a two-year high in August.

Property market activity

Ready for a spring property purchase?

If you’re considering buying this spring, speak to us about organising your finance. Given that stock volumes are low, there’s bound to be strong competition amongst buyers, but having pre-approval in place may give you a competitive edge. Get in touch today so we can get it sorted!




*Australian auction results, clearance rates and recent sales for the week ending September 1, 2019
*Monthly Home Values figures as at August 31, 2019

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