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 per cent. 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 per cent. 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 per cent, 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 per cent. 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 per cent. Adelaide’s auction activity was significantly less with just 92 auctions and a clearance rate of 72.1 per cent. In Canberra, 52 auctions were held over the week with a clearance rate of 70.4 per cent. Perth had just 20 auctions with only 10 results reported – a clearance rate of 50 per cent. Activity in Tasmania saw 13 auctions take place during the week, with a clearance rate of around 40 per cent. 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 per cent over last month, but were still up by 15 per cent year on year. Melbourne home values were down by 1.72 per cent over last month, but were still up by 9 per cent year on year. Brisbane/Gold Coast home values declined by 0.8 per cent, but were up by over 3 per cent year on year. Adelaide’s home values were down by 0.16 per cent, but were up by 3.37 per cent year on year. Hobart’s home values were down by 2.71 per cent but only showed a decline of 0.97 per cent year on year. Canberra bucked the trend, with home values increasing in May by 1.39 per cent, with an increase of 2.40 per cent year on year. Darwin home values were also up for the month, showing an increase of 0.56 per cent, but a year on year decline of 2.02 per cent. 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.
Sincerely, Gary Fernandez
I have always said Winter is a perfect time to buy property - there is less people looking, you can see the property in the worst time of the year, spot leaks etc.
MAKE YOUR OWN DECISION AND GIVE IT A REAL GO !!
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