14 Oct September 2014 Newsletter
It looks like we’re in for a flying start on the spring auction season this year, with some of our property markets remaining surprisingly active during the traditionally quiet winter months.
This unusually high activity has been stimulated by the Reserve Bank of Australia keeping the official cash rate on hold at 2.5 per cent for over a year, creating a very competitive loan environment with some lenders offering their lowest interest rates ever. What’s more, analysts agree we can expect these market conditions to continue well into next year, with the RBA citing “a period of stability on interest rates” in its first September meeting. While property market activity has remained high around the country over winter, Sydney and Melbourne have been outperforming other capital cities. Over the last quarter, Melbourne’s median house price surged 6.4 per cent to $523, 750. In the last week of winter alone, there were a massive 888 auctions held in Melbourne with a clearance rate of 71%. Sydney’s property market has also been running hot, with median house prices rising by 5 per cent to $650,000. In the last week of winter there were 796 auctions held with a clearance rate of 81.8%. In other capital cities, growth in median house prices has been much slower with only Canberra showing growth above 2 per cent. The auction activity has also been much slower, but winter activity has still been strong with Canberra experiencing a clearance rate of 72.4%, Adelaide 66.1%, Brisbane 47% and Perth 46.2% in the last weekend of August. In other property news, building approvals for new home constructions has risen by 9.4 per cent over the past year. This brings the number of new dwelling starts to a record 194, 652 this year. Master Builders Australia has also forecasted that a further 200,000 new properties will come onto the market over the next three years. Large numbers of new properties coming onto the market should help to keep house prices somewhat in check, however high levels of investor activity in the Sydney and Melbourne property markets are driving more rapid capital growth figures there than in other capital cities. Spring will bring many opportunities to enter the property market for first home buyers, investors and those just looking for a change of residence! Analysts are predicting a string of “Super Saturdays” where we can expect the number of properties up for auction to top 1000 in most capital cities.
Now is a great time to get your finances sorted in time for the busy spring selling season. The loan market is currently offering some of the most competitive rates on record, so give us a call today. Sincerely , Nick Foale