An update on the busy autumn property market!
Right after the Easter break, the Reserve Bank of Australia held its monthly meeting and decided to keep the cash rate on hold at 2.25 per cent. Many market analysts were anticipating another rate cut at the April meeting, but as this did not eventuate, there is speculation that there will be another fall in rates before mid 2015.
After the RBA decided to cut rates and bring them to new historical lows in February this year, property market activity has been increasing around the country. There are now plenty of properties on the market to choose from, whether you’re a first home buyer or investor.
For the week ending March 29, auction activity was strong in most capital cities. Sydney held 1268 auctions with a clearance rate of 84.4% which is very high. Melbourne also had a bumper week with 1506 auctions and a clearance rate of 78.8%. Canberra held 73 auctions with a clearance rate of 61.6%. Adelaide held 137 auctions with a clearance rate of 67.2%, Perth 52 auctions with a 50% clearance rate and Tasmania, 19 auctions with a clearance rate of 68.4%.
As you would expect, all this market activity has had a very positive effect on home values. In fact, the only area showing a marginal decrease in home values this month was Brisbane/Gold Coast which fell by 0.25%, but was still up by 2.15% over this time last year.
If you’re planning to invest, then you’ll be pleased to know major capital city markets are showing steady growth in home values this month. Sydney is leading the way with a monthly increase of 2.97%, and a year on year increase of 13.92%. Melbourne’s home values increased by 0.59% in March, up by 5.58% year on year. In Canberra, home values were up by 1.85% for the month and showed an increase of 1.48% year on year and Adelaide showed a marginal monthly increase of 0.13% but was up by 2.15% over this time last year.
Growth in other markets was a bit more reserved. Perth showed a small monthly home value increase of 0.03% but displayed a decline year on year of 0.05%, Darwin home values for the month were up by 0.92% but showed a year on year decrease of 0.75%. Hobart showed an increase of 0.24% for the month, but a year on year decline of 0.27%.
The RBA rate cut in February has motivated lenders to offer some very competitive interest rates and attractive offers on home loans. If you’re looking at purchasing property over the autumn or winter property seasons, you could be in a great position to take advantage of this highly competitive market to get a great deal.
April 2015
Written by:
Craig Forman | Cane Financial
We work with Craig to assist our clients mortgage and refinancing needs.
Please note that the information in this article is general, so you should have a chat with your financial advisor or mortgage broker about your specific house and land package purchase and financing options before you make a commitment with the developer to go ahead.
