Welcome to our March Newsletter
The busy Autumn property season is upon us, and what an exciting time of year it is! In recent weeks, we’ve seen auction volumes surge as one of the year’s peak selling periods kicks into gear. With so much more stock on the market, property prices in some markets are falling, so you could have greater room to negotiate a deal on a property purchase. 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
As widely anticipated, this month the Reserve Bank of Australia (RBA) decided to keep the official cash rate on hold at 1.5%. Some analysts say interest rates will remain on hold throughout 2018, while others predict there could be a rate rise later in the year. Either way, interest rates remain low and there are plenty of competitive home and property investment loans available. Talk to us to make sure you’re getting the right deal for you.
Property Market News
The Autumn auction market is sizzling, with volumes surging past 3,000 for the first time this year during the week ending February 25. Auction volumes continued to grow the following week, with over 3,400 auctions held around the country for the week ending March 4. However, whilst average auction clearance rates were well over 70% for the last week of February, they were not quite so strong the following week.
In Victoria for the week ending March 4, there were a whopping 1,630 scheduled auctions, with a preliminary clearance rate of 68%. New South Wales also had a high volume of properties go to auction – 1,239, and 66% sold. In Queensland, 271 properties were scheduled for auction, and 45% sold under the hammer. South Australia held 111 scheduled auctions, but cleared only 42% of stock. The ACT had 114 scheduled auctions, achieving a good clearance rate of 71%, while 30 properties went to auction in Western Australia but only 27% sold. In the Northern Territory, there were only 5 scheduled auctions, but there was a 100% clearance rate! And finally, Tasmania had only 7 auctions, down considerably from the week before, with a clearance rate of only 17%.
In recent weeks, we’ve seen home values fall slightly across many of Australia’s capital cities. According to CoreLogic, in February, most markets were showing marginal declines of less than 1% including Melbourne at -0.05% and Sydney at -0.59%. The only markets to show an increase in home values were Hobart at +0.70%, Adelaide at +0.02% and Brisbane/Gold Coast at +0.05% – but these increases were also marginal.
With auction stocks high, clearance rates dropping and home values steady, the property market may finally be showing indications of swinging in favour of buyers. Interest rates are still low, so the busy Autumn property market may give you the opportunity to negotiate a great price on your new home or investment property. Many lenders are offering very competitive deals on home and property investment loans right now, so speak to your mortgage broker about your finance options. They’ll compare the products and find you a loan that meets your needs and marries with your personal financial circumstances. Please get in touch!
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!
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.