We hope you enjoyed a great Easter long weekend last week and are making the most of 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%. 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 29th March, 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. So please give us a call on 0437 498 800 to see how we can help you get the best rate available and help you to achieve your property goals sooner.
