With the great spring weather and the exciting Spring Racing Carnival well and truly under way, there’s plenty of good news for those of you who are in the market to purchase property this month!
Once again, the Reserve Bank of Australia has decided to keep the official cash rate stable at 2.5% during its November board meeting. RBA Governor Glenn Stevens has also indicated again that the official cash rate is likely to stay at this level for quite some time. As a result, most analysts are predicting that interest rates will remain at historically low levels well into 2015.
In more good news for property buyers, slowing median house price rises in most capital cities during the last quarter have continued during October. In fact for the month, only Sydney, Melbourne and Brisbane recorded slight gains in median house prices, whilst all other capital cities recorded modest monthly price falls. Overall, the annual trend in capital gains has been moderating since a peak in April last year, which is good news for property buyers who have been chasing prices in the property market, particularly in Sydney.
Generally, housing stock levels remain strong, giving property buyers more choice than this time last year. Auction numbers and clearance rates have remained high in most capital cities, but have declined somewhat in Canberra, Perth and Tasmania.
In the last weekend of October, there was a record number of auctions held nationwide, with more than 3,300 properties going under the hammer. The hottest markets were Melbourne and Sydney. In Melbourne alone, over 1600 properties went to auction, and in Sydney 859 with clearance rates remaining above 70% in both cities.
Other markets were not quite as active as our two largest cities. Brisbane reported 162 auctions with a relatively low clearance rate of 46.3%. Adelaide’s market held 115 auctions with a 56.5% clearance rate. Canberra reported 48 auctions with a 58.3% clearance rate. Perth held 20 auctions with a 25% clearance rate and Tasmania just 10 with a 50% clearance rate.
The property market looks full of opportunities for those looking for a home or investment. Inexpensive borrowing costs also look set to continue, with interest rates remaining at historically low levels and plenty of deals and incentives being offered by lenders.
If a property purchase is part of your plans this spring, talk to us about your financing and loan options now. With interest rates this competitive, it’s also a great time for a home loan health check!
Give us a call today, we’ll be happy to hear from you.
