The last weekend in September was a little quiet in our property markets, as buyers took time off to watch the AFL and NFL Grand Finals. We hope your team won and you’re now back on the open inspection circuit – there are plenty of bargains up for grabs in our Spring property market and who knows how long the current buyer’s market will last?
Interest Rate News
At their October meeting, the Reserve Bank of Australia left the official cash rate unchanged at 1.5% making this the 25th month in a row where no action was taken on rates by the RBA. However, lenders continued to make rate adjustments throughout September to account for their increasing borrowing costs, and we can now expect interest rates to remain relatively stable for some time.
Property Market News
The latest report from Moody’s Analytics and CoreLogic indicated we can expect price declines in Sydney and Melbourne of about 5 – 10%, but foresees all markets returning to positive annual growth territory by mid 2019. Over the past year, prices have trended higher in Hobart, Canberra, Adelaide and Brisbane, but are lower in Perth, Darwin, Sydney and Melbourne. Generally speaking, more expensive properties are the weakest segment in all markets, so there may be opportunities for those looking to grab a bargain at the top end of the market.
Compared to this time last year, Sydney home values have fallen by the highest margin at -6.09% YOY followed by Darwin at -3.71%, Melbourne at -3.37% and Perth at -2.77%. The outstanding home value growth performers over the last year have been Hobart at +9.30% and Canberra at +2.02%, followed by Brisbane and Adelaide which experienced growth around +0.75%.
In September, the biggest decline in home values was in Melbourne, where prices fell -0.89%. In Perth, values dropped -0.65%, while Sydney recorded a monthly decrease of -0.60%. Prices in Darwin fell by -0.37% and Adelaide -0.24%. Brisbane/Gold Coast experienced a rise of +0.10%, Canberra +0.25% and Hobart showed the strongest growth at +0.40%.
Auction clearance rates are trending lower across all markets and the number of properties up for auction has declined significantly since this time last year. More sellers are choosing the private sale option as it allows them to hold out for their desired price, however this tactic also gives buyers more room to negotiate.
If you’re serious about buying a property this Spring, don’t wait to ask us to arrange pre-approval on your home loan. Knowing your ceiling price will give you more confidence to negotiate and a pre-approval will reassure vendors you’re serious about purchasing. It’s also a good time of year to get a home loan health check or to consider a home loan refinance, so please don’t hesitate to get in touch for a chat about your circumstances and requirements today.