Loan Market Update

After Easter the Reserve Bank of Australia decided to keep cash rates on hold at 2.25 per cent. Another rate cut was anticipated by many analysts but this did not happen. However there is speculation of another rate reduction before mid 2015.Boosted by the new historical rate lows the February property market activity has been increasing around the country. Whether a first home buyer or investor there are many properties on the market to choose.

Auction activity was strong in most capital cities. For the week ending March 29, Sydney held 1268 auctions with a high clearance rate of 84.4%. Similarly Melbourne had  great week with 1506 auctions with a clearance rate of 78.8%. Canberra held 73 auctions with a clearance rate of 61.6%. Adelaide held 137 auctions with a clearance rate of 67.2%, Perth 52 auctions with a 50% clearance rate and Tasmania, 19 auctions with a clearance rate of 68.4%.

All this market activity had a positive effects on home values. Iso much so that the only area showing a marginal decrease in home values this month was Brisbane/Gold Coast which fell by 0.25%, but still 2.15% up over this time last year.

You’ll be pleased to know that if you are considering investing major capital city markets are showing steady growth in home values this month. Sydney with a monthly increase of 2.97% is leading the way with a year on year increase of 13.92%. Melbourne’s home values increased by 0.59% in March, 5.58% up year on year. In Canberra, home values were 1.85% up for the month and increased 1.48% year on year while Adelaide had a marginal monthly increase of 0.13% 2.15% up over this time last year.

Growth in other markets was more reserved. Perth showed a small monthly home increase of 0.03% but displayed a decline year on year of 0.05%, Darwin home values for the month were 0.92% up but showed a year on year decrease of 0.75%. Hobart showed an increase of 0.24% for the month, but a year on year decline of 0.27%.

February’s RBA rate cut motivated lenders to offer very competitive interest rates and attractive packages on home loans. If you’re thinking of purchasing a property over the autumn or winter property seasons, this highly competitive market will help to get a great deal. So please give us a call to see how we can help you get the best rate available and help you to achieve your property goals sooner.

Sincerely , Top Ten Home Loans

 

About Paul Brazier