We hope you picked a winner on Melbourne Cup Day last week! We’ve now moved into the busiest time of year in our property markets, so we hope you’re ready to handle the pace this spring.
At its 2016 Melbourne Cup Day meeting, the Reserve Bank of Australia (RBA) decided to keep the official cash rate on hold at 1.5 per cent for November. The decision was widely expected by analysts and forward predictions are for no further RBA cash rate cuts in 2016.
The RBA may not have cut rates this month, but you can. Many lenders have indicated that interest rate changes do not only depend on RBA changes to the cash rate, but also on other market factors and their actual costs. So if you’re a home owner and looking to refinance to save interest, call us regularly to check the latest home loan interest rate that is available for you.
The RBA last cut rates in August and May this year, which brought the official cash rate to its lowest level in history. As a result, home loan interest rates are very competitive and the good news for home buyers and property investors is that it looks as though they will remain low for quite a while.
That means buying conditions are great this spring. Property market activity is heating up, particularly in Melbourne and Sydney, with plenty of housing stock for buyers and investors to choose from. For the week ending October 30, Victoria held 727 auctions and achieved a clearance rate of 76%, whilst Sydney held a whopping 1309 auctions and achieved a clearance rate of 77%.
Activity in other markets indicated that buyers are possibly being a bit more discerning about prices. Queensland held 417 auctions for the same period, which is quite high, however they only achieved a low clearance rate of 39%. South Australia held 179 auctions with a clearance rate of 69%, ACT had 93 auctions with a clearance rate of 70%, Western Australia – which is not a big auction market – held 75 auctions with a clearance rate of just 37%. Northern Territory only held 6 auctions with a clearance rate of just 17% and Tasmania 10 auctions with a clearance rate of 33%.
Rises in home values appear to have slowed across all markets during October. In Sydney, home values only rose by 0.62% and in Melbourne, they rose by just 0.78% despite strong activity from buyers in both of these markets. Brisbane/Gold Coast showed an increase of 1.10%, Perth 0.78%, Darwin 2.20%, and Canberra 0.40%. Adelaide showed a decrease of 2.39% as did Hobart, which showed a decrease in home values of 2.05% for the month.
Opportunities are plentiful for first home buyers, next home buyers, refinancers and property investors right now. We’re here to help you make the most of low interest rates and the excellent spring property buying conditions, so please give us a call to chat about your plans. We’ll help you get the right home loan for your needs, with the most competitive interest rate available for you from Australia’s leading lenders. Christmas is also approaching fast and if you’re looking to buy a big ticket item for yourself or your family, we’ll be happy to help you with your finance needs for that too, so please give us a call today.