Welcome to our April Newsletter
We hope you had an amazing Easter long weekend and the Easter Bunny was very generous! March was an exciting month in the property world. In the week prior to Easter, we saw the highest volume of auctions ever recorded across the combined capital cities, and by Melbourne individually. Meanwhile, most capital city home values are continuing their gradual decline, which could mean market conditions are finally turning in favour of buyers.
Interest Rate News
While the Reserve Bank of Australia decided to leave the cash rate on hold at 1.5% this month, lenders have been changing their interest rates outside of the RBA’s movements. Suncorp, for example, increased interest rates on all variable home loans in March, including those for owner-occupiers on principal and interest loans, quoting the rising costs of funding as the reason for the move.
Last month, we also saw the US Federal Reserve raise their official cash rate from 1.5% to 1.75% – the first time in 18 years the cash rate in the USA has been higher than Australia’s. The move has set chins wagging about whether the RBA will follow suit, but most economists don’t predict a cash rate rise for us just yet.
Property Market News
Over the month to March 31, the combined capital city home value average dropped -0.19%. Sydney saw the highest decline of -0.29%, while Melbourne saw prices drop -0.24%. In Adelaide, home dwelling values were down -0.26% over the month. However in Brisbane, home values increased by 0.07%, in Darwin they were up by 0.98%, Canberra 0.24%, Perth saw 0.31% growth and Hobart recorded the highest growth in dwelling values for the month at 1.68%.
Auction activity was through the roof in the week prior to Easter. CoreLogic recorded the highest level of auctions over the year-to-date as at March 25, as well as the highest volume of auctions ever recorded across the combined capital cities. Overall, 3,967 auctions were held (the previous record was 3,908 for the week ending November 30, 2014), with a preliminary clearance rate of 65.5%.
Melbourne led the way with a record busy week in which 2,078 properties went to auction, and 67% sold. Sydney held 1,359 auctions and achieved a clearance rate of 66.2%. In Brisbane, there were 194 auctions and almost half of the properties went under the hammer (49.2%). Adelaide held 143 auctions, and cleared 67.3% of stock. In Canberra, there were 129 auctions and 73.8% of properties sold. Perth held 57 auctions (achieving a 24% clearance rate) and Tasmania had seven auctions (66.7% of properties sold).
With interest rates remaining low, record levels of properties going to auction and prices coming down, now could be a fantastic opportunity to make your next property purchase! Speak to your mortgage broker about your finance options, and a loan that ties in with your financial situation and goals. And if your existing home loan interest rate rose in March and you’d like to compare the market for a more competitive option, please don’t hesitate to give us a call.
The information provided is general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.