Welcome to our September Market Update – Mango Money

Welcome to our September Newsletter

The busy Spring selling season has kicked off and that means an action-packed few months ahead in our property markets. If you’re planning on buying a home, get ready to negotiate! With auction clearance rates and property prices on a downward trend, you’ll have the advantage over vendors feeling the pressure to sell. Here’s our latest update to get you ready for the action.

Property Market News

In August, we saw home values continue to slide across many markets. According to CoreLogic, prices dropped -0.38% in the month to August 31 across the combined five capital cities (Sydney, Melbourne, Brisbane, Adelaide and Perth).

The biggest decline was in Melbourne, where prices fell -0.64%. In Perth, values dropped 0.54%, while Sydney recorded a monthly change of -0.27%. The falls were not as steep in Brisbane – the monthly change was -0.15% and in Hobart they were just -0.13%. Adelaide recorded growth of 0.30% over the month, Darwin’ home values rose marginally at 0.09% but Canberra was the winner with price gains of 0.54% for the month.

Homes are staying on the market longer and auction volumes remain lower than this time last year. For the week ending Sunday September 2, the following results were recorded:

  • Victoria: 879 scheduled auctions, 60% clearance rate
  • New South Wales: 803 scheduled auctions, 58% clearance rate
  • Queensland: 267 scheduled auctions, 33% clearance rate
  • South Australia: 83 scheduled auctions, 61% clearance rate
  • Australian Capital Territory: 58 scheduled auctions, 63% clearance rate
  • Western Australia: 30 scheduled auctions, 42% clearance rate
  • Northern Territory: 3 scheduled auctions, 33% clearance rate
  • Tasmania: 5 scheduled auctions, 33% clearance rate.

Out-of-cycle interest rate rises, falling auction clearance rates and stalling property prices have turned conditions in favour of property buyers this Spring. If you’re interested in making a purchase, now is the time to see your broker about a pre-approval on your home loan – which will put you in a great position to negotiate on the property you want. If you’re concerned about how the recent rate rises may affect you, please ask for a free home loan health check. Your broker is here to compare the market and find the right loan for you. Please get in touch today.