Can you believe how time flies? Winter is here and we are rapidly approaching the end of the financial year already! That makes it a great time of year to get that new car, or buy new equipment for your business, so if you need financing for these items, don’t forget to give us a call.
This month, the news continues to be positive for property buyers and investors
At its June meeting, the Reserve Bank of Australia (RBA) decided to keep rates on hold at 2.0%. The decision was widely expected by market analysts, after the RBA cut rates in May and February this year, bringing interest rate to all-time record lows.
Nevertheless, further rate cuts could be on the horizon later this year, which could bring the cash rate down below 2.0%. Analysts are predicting that if there is another rate cut this cycle, it will be likely to occur as late in the year as November.
Low interest rates have been stimulating the property markets Australia-wide
Last week there were 2,727 homes taken to auction nationally, which is up from the previous week. The national clearance rate was approximately 78.9%, and whilst this is down slightly from the week before, it was the tenth week in a row where the national clearance rate was above 77%.
Sydney and Melbourne markets are still a stand out from our remaining capital cities. Last week there were 882 auctions held in Sydney, with a clearance rate of 86.5%, while Melbourne held 1,053 auctions with a clearance rate of 78.3 per cent.
For the other capital cities, Brisbane held 146 auctions with a clearance rate of 52.1%. Adelaide’s auction activity was significantly less with just 92 auctions and a clearance rate of 72.1%. In Canberra, 52 auctions were held over the week with a clearance rate of 70.4%. Perth had just 20 auctions with only 10 results reported – a clearance rate of 50%. Activity in Tasmania saw 13 auctions take place during the week, with a clearance rate of around 40%.
National home values
For most of the country, activity is starting to slow down a little as we head into the traditionally quieter winter months. This is reflected in home values for May which were mostly showing slight declines.
Sydney home values were down by 0.67% over last month, but were still up by 15% year on year. Melbourne home values were down by 1.72% over last month, but were still up by 9% year on year. Brisbane/Gold Coast home values declined by 0.8%, but were up by over 3% year on year. Adelaide’s home values were down by 0.16%, but were up by 3.37% year on year. Hobart’s home values were down by 2.71% but only showed a decline of 0.97% year on year. Canberra bucked the trend, with home values increasing in May by 1.39%, with an increase of 2.40% year on year. Darwin home values were also up for the month, showing an increase of 0.56%, but a year on year decline of 2.02%.
If you’re in the market to purchase a property, then the slow-down in the rise in property values will come as very good news
Also good news is the great interest rates currently available on home loans – with the recent rate cut last month, we’re experiencing some of the lowest interest rates on record. Now is a good time to talk to us about getting pre-approval on your next home loan, so don’t hesitate to give us a call for a chat today on 0437 498 800.
