December 2014 Market Wrap

It’s December already, a New Year approaches.  We’d like to take this opportunity to wish you and your family a very safe and happy Holiday Season, and to thank you for turning to us for your finance requirements this year. It’s been a very busy and successful year for everyone and we’re sure you’re looking forward to the break as much as we are!

This month, the news is looking very positive for property buyers in 2015. During its December meeting, the Reserve Bank of Australia decided to keep the official cash rate on hold at 2.5 per cent for the remainder of this year, and there are indications that it may consider cutting the cash rate at its next meeting in February 2015.

The RBA’s decision whether or not to cut rates at its next meeting will be influenced by the effect of its current monetary policy on the Australian dollar, as well as unemployment rates and other economic data in the interim period.

So we’ll all just have to wait and see if interest rates fall to new historical lows in 2015!

Summertime is usually a slow period for Australian property markets and traditionally, activity comes to a stop over the Christmas break. However, this year the spring selling season seems to be extending itself into the first weeks of summer and market activity in most of our capital cities is still quite strong.

According to Australian Property Monitors (APM), data would indicate that Saturday November 29 was a bumper day for auctions around the country. There were over 2,565 auctions listed in our major cities, with a national clearance rate of 68 per cent.

However, it should be noted that the majority of this activity is occurring in Melbourne and Sydney. APM indicated that Melbourne listed 1,325 auctions and Sydney 1,058 for the day. Both cities maintained very high clearance rates and this looks set to continue.

Other cities with strong auction numbers and good clearance rates included Adelaide (100 auctions), and Brisbane (173 auctions). Activity in Canberra, Perth, Hobart and Darwin appears to be slowing in line with seasonal expectations, however clearance rates remain good.

In all capital cities in November, home value growth slowed considerably. Across the combined capital cities, there was a 0.3 per cent fall in values. Only a few cities showed growth – Sydney values were up by 1 per cent, Perth 0.9 per cent, and Hobart 0.2 per cent. Melbourne showed the biggest drop in values for the month, falling by 2.6 per cent, while Adelaide values were down 0.3 per cent.

Overall, 2014 has been a very positive year in our property markets. For those in the market to purchase property, the low interest rate environment has created some very favourable conditions, whether you’re a first home buyer, investor or just refinancing an existing loan. And the good news is that these conditions look set to continue, and improve even further, in 2015.

Once again, we’d all like to wish you a happy Holiday Season and a prosperous New Year! If you’d like to discuss your property plans for 2015, we’ll be happy to help, so get in touch.

Sincerely , Top Ten Home Loans

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