The news is all good for those of you in the market to purchase property in 2015! At its first meeting for the year, the Reserve Bank of Australia (RBA) decided to cut the official cash rate by 25 basis points, bringing it to a record low of just 2.25 per cent.
Rates had been on hold since August of 2013, creating a very low interest rate environment which stimulated property markets across Australia throughout 2014. With this most recent rate cut, we can expect our property markets to perform very well again this year, with investors and home owners looking all set to enjoy significant capital gains on home prices as well as savings on their mortgage repayments.
After a booming property market throughout 2014, our January property market was comparatively quiet – allowing for a slowing in transactions that is traditional for the holiday period. During January, auction numbers were down across all capital cities. For the week ending January 25, Sydney reported just 52 auctions, however the clearance rate was high at 90.4%. Melbourne reported 41 auctions with a clearance rate of just 56.1%.
Similarly, home values showed little movement during January, with Sydney’s median house price rising by just 1.4%, Melbourne 2.7%, Brisbane/Gold Coast 0.8%, Canberra 1.6% and Hobart 1.5%. Adelaide, Perth, Darwin and non-capital city areas all showed marginal decreases in home values for the month.
However, year on year, home values have risen across the country in all areas except for Canberra – great news if you’re an investor. Sydney’s median house prices have risen by 13% since this time last year, Melbourne is up by 7%, Brisbane/Gold Coast 5.2%, Adelaide 3.1%, Perth 2.6%, Hobart 3%, Darwin 1.4% and non-capital city areas 2.1%.
All this is very positive for property owners and those in the market to buy or refinance in 2015. For the last 18 months, we’ve been experiencing a very competitive loan market, with record low interest rates. And now, with this recent rate cut from the RBA, we are expecting many lenders to drop their rates even further.
We’ll be keeping our finger on the pulse of the best mortgage deals available in the market, as lenders release new offers and rates. So stay in touch with us to get the latest news on what’s available in the mortgage market – and remember, we’re here to help you get you the very best rate and help you achieve your financial goals in 2015!
Sincerely , First Home Owners Centre