Summer has arrived and not only is the weather heating up, so is the property market! Property volumes are continuing to surge, with plenty of new listings going up in areas previously affected by lockdowns such as Sydney, Melbourne and Canberra. Meanwhile, Australian property values are seeing a slowdown in the monthly rate of growth. Welcome news for those shopping for a home or investment property.
Interest rate news
At its December meeting, the Reserve Bank of Australia (RBA) left the cash rate on hold at the historically low level of 0.10 per cent.
Despite some speculation that a rise could be on the way as early as mid-next year, RBA Governor Philip Lowe recently said the latest data and forecasts did not “warrant an increase in the cash rate in 2022”.
Some lenders have hiked fixed interest rates in recent weeks, but there are still plenty of offers available. Talk to us about what type of mortgage is right for your specific situation.
Home value movements
Australia’s housing values are continuing to slowly lose momentum, following a peak monthly rate of growth in March this year (2.8%). In November, housing values edged 1.3% higher.
CoreLogic’s research director, Tim Lawless, said the slowdown in the pace of growth was due to a number of reasons.
“Virtually every factor that has driven housing values higher has lost some potency over recent months,” he said.
“Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available.”
Thinking about a new home in 2022 or delving into property investment? Contact one of our brokers today to get pre-approved on your finance and start looking today!