Can you believe it’s already May? If you’ve been thinking about a 2018 property purchase, here’s why now is a great time to go for it.
- Firstly, the cash rate remains unchanged at a record low level.
- Secondly, home values and auction clearance rates are falling in many markets around the country, so conditions look like they’re starting to turn in favour of buyers.
- And last, but not least – there’s plenty of housing stock to choose from in the busy autumn selling season, so why not go for it?
Interest Rate News
This month, the Reserve Bank of Australia decided to leave the cash rate unchanged at 1.5%, and it’s widely believed any change to the cash rate is still some way off. Meanwhile, some banks have dropped interest rates on investor and interest-only mortgages in recent months. If you have an investment property, it’s worth checking in with us to see whether your investment loan is right for you. We may even be able to find you a more competitive rate.
Property Market News
Home values
Across the combined capital cities, home dwelling values fell by -0.31% over the month ending April 30. Hobart was the outstanding performer, with home values rising 1.16%. Canberra was next with a rise of 0.64%, followed by Darwin at 0.58% and Adelaide at 0.06%. Perth and Brisbane experienced marginal home value reductions of less than 0.05%, whilst Sydney home values fell 0.36% and Melbourne saw the biggest monthly home value reduction of 0.45%.
Auction clearance rates
Auction activity increased across the combined capital cities in the week ending Sunday April 29, however clearance rates around the nation are showing significant declines. In Victoria, there were 1,419 auctions with a 66% clearance rate. NSW held 975 auctions, but only 58% of stock sold. In South Australia there was a 62% clearance rate on 134 properties, and in Canberra, 92 properties went to auction and 64% sold.
Clearance rates were even lower in other states. In Queensland, 305 properties went to auction and 42% sold, whilst Western Australia saw 44 auctions take place, returning a clearance rate of only 38%, and Tasmania had the lowest clearance rate of around 33%, but only eight properties went to auction.
Winter is coming!
It can be a dreary time of year in the property market. So why not take advantage of the busy autumn selling season while it lasts? With auction clearance rates generally softening, you may be able to negotiate a fantastic deal for a new home or investment property. Whether you’re a first home buyer, next home buyer or investor, we can provide expert advice about all your finance needs. Please get in touch to arrange pre-approval on a loan for your next property purchase today! Call us on 0437 498 800.
