The autumn property season is upon us, and while the weather may be cooling down, the property market around the country is continuing to heat up! In the latest REA Insights Property Outlook report, 2021 is set for a big year as the positive momentum for price growth continues.
There is a substantial lift in new listings in March and they are likely to track higher over the coming months according to CoreLogic’s research director, Tim Lawless. “If buyer demand continues to lift it’s likely overall advertised stock levels will remain low,” Mr Lawless added. So, if you’re in the market for a new home or property investment, be sure to speak to your mortgage broker about your plans as soon as you can!
Interest rate news
The Reserve Bank of Australia (RBA) decided to keep the official cash rate unchanged at 0.10 per cent at its 2 March meeting. This announcement was not a surprise as the RBA has been clear in their message that they won’t be changing rates any time soon. The Board also decided to maintain the current policy settings, including the yield on the three-year Australian government bond, as well as the parameters of the Term Funding Facility (TFF), and the government bond purchase program. RBA Governor Philip Lowe said that the economic recovery is well under way and has been stronger than was earlier expected. “There has been strong growth in employment and a welcome decline in the unemployment rate to 6.4 per cent. Retail spending has been strong and most of the households and businesses that had deferred loan repayments have now recommenced repayments,” he added.
Home value movements
CoreLogic’s home value index saw prices rise by 2.1 per cent across all capital cities and the rest of state regions, making it the largest month-on-month change CoreLogic has recorded since Aug 2003. Regional housing values continued its increasing trend as it went up by 2.1 per cent over the month. The capital cities have caught up from their weaker performance as their housing values jumped by 2.0 per cent. Hobart (2.50 per cent), Sydney (2.47 per cent), and Melbourne (2.06 per cent) were among the strongest performing markets where dwelling values increased by more than 2.0 percent in February. The dwelling values for the rest of the capital cities also increased: Canberra (1.87 per cent), Perth (1.55 per cent), Brisbane (1.47 per cent), Adelaide (0.75 per cent) and Darwin (0.74 per cent).
CoreLogic data shows that one of the driving factors for higher housing prices is low advertised supply levels. “Housing inventory is around record lows for this time of the year and buyer demand is well above average. These conditions favour sellers. Buyers are likely confronting a sense of FOMO which limits their ability to negotiate. Vendor discounting rates were estimated at a record low of 2.6 per cent in February, and auction clearance rates have consistently been in the high 70 per cent to low 80 per cent, which is well above average,” Mr Lawless said.
Monthly home value change
* Monthly Home Values figures as of 28 February, 2021 * Australian auction results, clearance rates and recent sales for the week ending 28 February, 2021. * The clearance rate is preliminary and current as at 10:53 am ADST, 1 March, 2021.
As the end of the month approaches, we’d like to wish you and your family a very happy and safe Easter holiday season. Please read our article for some suggestions to make your family Easter celebrations more fun than ever – enjoy!
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