The property market is in full swing in most states around the country. Auction activity reached record levels during February in our eastern states, but elsewhere market conditions varied. We are now seeing a two-speed property market across the country, which could create some great opportunities for savvy buyers and property investors over the coming months.
Interest Rate News
The Reserve Bank of Australia (RBA) met for its March meeting last week and elected to keep the official cash rate on hold at 1.5%t yet again.
Even though the RBA didn’t change the interest rate this month, there are several reasons why you should check in with us:
- Lenders are continuing to adjust rates outside of RBA movements. It will pay to see us for a home loan health check now, particularly if you’ve had your home loan for a while.
- Property investors are facing tougher criteria from some lenders, particularly on interest-only products and refinances due to controls imposed by APRA last year. Make sure you consult us about your finance if you plan to invest.
- With the property market on the move, it is important to get pre-approval on your home loan before you hit the auctions.
Property market news
Auction clearance rates
We’re seeing people rushing out in droves in Melbourne and Sydney to place their bids. For the week ending Sunday March 5, Victoria had a huge 1,542 auctions with a clearance rate of 78%, and NSW 1,133 auctions with a clearance rate of 75%. Conditions were also good in the ACT which had a clearance rate of 71%.
Other areas were not looking quite so robust, with clearance rates in Queensland, Western Australia and South Australia all sitting below 65% for the same weekend.
Home values
The interesting two-speed property market has also been evidenced in this month’s home value figures. Sydney home values jumped 2.58% in February, showing a huge 18.41% increase year on year and in Melbourne, home values rose 1.46% in February and showed an increase of 13.11% year on year.
Other areas showed more conservative rises and in some cases, falls. Adelaide showed a slight home value increase of 0.63% last month and was up 3.5% year on year, Hobart showed an increase of 0.98% last month and an increase of 5.83% year on year and Brisbane/Gold Coast showed a marginal decrease for the month of 0.05% and growth of 3.47% year on year. By contrast, both Perth and Darwin home values fell in February.
Contact us on 0437 498 800
Low interest rates are looking set to continue and with an abundance of housing stock in most markets, we’re anticipating an exciting and dynamic property market for the first half of 2017. Remember, we’re here to help you find the right finance product for your needs, whether it is for your first home, your next home, an investment property, or even refinancing to get a better rate. Call us today on 0437 498 800 for a chat about your plans, we’ll be happy to help.
