What an interesting spring selling season it’s shaping up to be.
This month, RBA governor Michele Bullock kept the cash rate on hold while taking the helm for the first time.
Meanwhile, the demand/supply imbalance continues to push property values higher in many markets.
If you’re looking to buy this spring, it’s important to have your pre-approval in place, so that you can pounce on the right property when it comes your way. Please contact us for assistance.
Interest rate news
All eyes were on new RBA governor Michele Bullock this month to see where the cash rate would go under her leadership.
As many expected, the board decided to press pause for a fourth consecutive month, leaving the cash rate on hold at 4.10 percent.
We saw the monthly Consumer Price Index (CPI) indicator rise from 4.9 percent annually in July to 5.2 percent in August.
The RBA will no doubt be waiting to see the September quarter inflation data, due to be released on October 25, before making their November cash rate decision.
Another hike would put already struggling homeowners under further pressure. According to Roy Morgan’s latest mortgage stress survey, 29.2 percent of owner-occupied households with mortgages are now in stress – the highest share since May 2008.
Meanwhile, an estimated $52 billion worth of fixed-rate mortgages are expected to expire over the six months to December 31.
Many of those borrowers are set to jump from ultra-low rates of around 2 percent to variable rates of around 6 percent.
If you’re already battling with rising repayments on your variable home loan, now is the time to chat to us about your options.
Home value movements
Housing values continued to rise in all markets except Hobart in September. Overall, home values were up 0.8 percent, according to CoreLogic data.
Adelaide led the way, with property prices up 1.7 percent, followed by Perth (1.3 percent) and Brisbane (1.3 percent).
Quarterly data shows the upswing in Australian housing values has lost some steam, with a 2.2 percent rise in CoreLogic’s national Home Value Index in the September quarter, compared with a 3 percent rise through the June quarter.
CoreLogic’s research director, Tim Lawless, said the performance of the housing market in each city reflected the underlying supply dynamic.
“The three capitals recording the highest capital gain each have advertised supply levels that are around 40 percent below their previous five-year average,” he said.
“Advertised supply levels across Hobart, where values are still trending lower, have been holding at above-average levels since June last year and were almost 40 percent above its five-year average.”
Meanwhile, the combined regional markets saw a 1.1 percent rise in property values through the September quarter.
* Monthly Home Values figures as of 30 September 2023
* Australian auction results, clearance rates, and recent sales for the week ending 8 October 2023
* The clearance rate is preliminary and current as of 10:35 a.m. 8 October 2023
All dwellings Auctions Clearance Rate Private Sale Monthly home values change VIC 979 64% With the cash rate on hold, it’s a good time to consider buying your own home, your next home, or an investment property with an appealing rental return.
Please contact us for assistance and we’ll run through your finance options.
The material on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this website is General Advice and does not take into account any person's particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this website are provided for illustrative purposes only. Although every effort has been made to verify the accuracy of the information contained on this website, Infocus, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.