Winter is coming to an end and that means there are only a few weeks to go until the busy spring property market kicks off. If you’re looking to buy a home, it may be a good idea to act now while the other buyers are still in hibernation! Here’s what happened in the property market over the last month.

Interest Rate News
At its August meeting, the Reserve Bank of Australia (RBA) kept the official cash rate on hold at 1.5%. Many economists expect the cash rate to stay put for at least another year, if not longer.

Meanwhile, several lenders adjusted home loan interest rates during July, citing funding costs as the reason for their rate rises. If you’ve had your home loan for a while, it’s worth checking in with us to make sure it’s still competitive.

Property Market News
Property market conditions continued to turn in favour of buyers last month. Home values continued to soften in July in most of our major markets. Only ACT, QLD and NT showed very marginal increases.

Auction activity and clearance rates also trended lower. For the week ending July 29, the following results were recorded:

• Victoria: 841 scheduled auctions, 61% clearance rate
• New South Wales: 563 scheduled auctions, 55% clearance rate
• Queensland: 243 scheduled auctions, 40% clearance rate
• South Australia: 77 scheduled auctions, 58% clearance rate
• Australian Capital Territory: 46 scheduled auctions, 72% clearance rate
• Western Australia: 40 scheduled auctions, 42% clearance rate
• Northern Territory: 3 scheduled auctions, 33% clearance rate
• Tasmania: 0 scheduled auctions, 0% clearance rate.

With property prices easing and fewer buyers competing at auction, now could be the time to secure the property you want on budget. Remember, less competition means vendors may be more flexible on price. To secure a pre-approval on your home loan so you’re in a strong position to negotiate, please get in touch with your broker.

Sources:

https://www.realestate.com.au/auction-results/

https://www.corelogic.com.au