Spring is here and that means vendors will be sprucing up their gardens and making sure their properties present beautifully for the busy spring selling season.
This spring, we’re likely to see varied conditions across Australia’s capital cities. In some state capitals, like Melbourne, an oversupply of properties may mean buyers have the upper hand. Whereas in other markets like Adelaide and Perth, sales have been outpacing new listings, so it may be harder to nab a bargain.
If you’re planning a spring property purchase, chat to us early about getting your finance pre-approved, so that you can jump on any bargains.
Interest rate news
At its latest meeting in August, the Reserve Bank of Australia (RBA) left the cash rate on hold at 4.35 per cent, where it’s sat since November 2023.
According to the Australian Bureau of Statistics, the monthly Consumer Price Index indicator rose 3.5% in the 12 months to July, down from a 3.8% rise in the 12 months to June. The change was in part due to the extended and expanded Commonwealth Energy Bill Relief Fund rebate taking effect, and the introduction of State government rebates.
In a media release following the decision, the RBA said inflation remained above target and was proving persistent.
“Inflation has fallen substantially since its peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,” the RBA said.
“But inflation is still some way above the midpoint of the 2–3 per cent target range.
“The central forecasts… are for inflation to return to the target range of 2–3 per cent late in 2025 and approach the midpoint in 2026.”
Most economists now believe we won’t see a cash rate cut until 2025. The next cash rate decision will be announced on September 24.
It always pays to shop around, especially for something as important as your home loan. Chat to us and we’ll compare the market for you and explain whether you could be getting a more competitive home loan elsewhere.
Home value movements
In winter, we saw growth cool in Australia’s housing values, with Melbourne’s median house price slipping below Perth and Adelaide.
In August, national home values increase 0.5% according to CoreLogic. While this constituted the 19th consecutive month of growth, it’s clear that some of the steam has been taken out of the market.
The quarterly increase in national home values (1.3%) is less than half the rate of growth in the same three-month period of 2023 (2.7%).
Melbourne is seeing an abundance of properties being listed, while listings are down in Perth and Adelaide. As a result, capital growth across the cities remains diverse.
CoreLogic Head of Research Eliza Owen said that while seasonality may have contributed to weaker value growth through winter, affordability constraints were a key factor behind the broader slowdown.
“The seasonally adjusted Home Value Index had a stronger result through the three months to August, at 1.7%. But this is still down from the 3.3% lift seen in the winter of 2023,” she said.
Ms Owen noted that the high levels of growth in Perth, Adelaide and Brisbane would be difficult to sustain.
“Housing values cannot keep rising at the same pace in the mid-sized capitals of Perth, Adelaide and Brisbane when affordability is becoming increasingly stretched, particularly in the context of elevated interest rates, loosening labour market conditions and cost of living pressures.”
| All dwellings | Auctions | Clearance Rate | Private Sale | Monthly home values change |
|---|---|---|---|---|
| VIC | 1132 | 60% | 1350 | ▼ – 0.2% |
| NSW | 1226 | 57% | 1657 | ▲ 0.3% |
| ACT | 90 | 62% | 103 | ▼ – 0.4% |
| QLD | 261 | 48% | 1185 | ▲ 1.1% |
| WA | 11 | 55% | 662 | ▲ 2.0% |
| NT | 1 | 100% | 39 | ▼ -0.2% |
| TAS | 1 | -% | 177 | ▼ -0.1% |
| SA | 145 | 76% | 319 | ▲ 1.4% |
* Australian auction results, clearance rates and recent sales for the week ending 1 September 2024
* The clearance rate is preliminary and current as of 1:45 pm, 4 September 2024
If you have visions of being in a new home by summer, we can help get you there.
Get in touch today and we’ll organise pre-approval on your finance, so that you’re ready to spring into action when the right property comes along.
