Some positive news for homeowners this month, with the Reserve Bank of Australia (RBA) deciding to keep the cash rate on hold at 4.1 per cent.
Australia’s housing values moved through a fourth month of recovery in June. Locally Perth properties continued their growth with a 0.9% increase.
Values continued to climb in most markets, with CoreLogic data recording a 1.1 per cent rise in national property values in June. This followed a 1.2 per cent increase in May.
If you’re planning a spring property purchase, make sure you speak to us early about pre-approval on your finance.
Interest rate news
At its July meeting, the RBA left the cash rate unchanged at 4.1 per cent.
“The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so,” RBA governor Philip Lowe said.
“In light of this and the uncertainty surrounding the economic outlook, the Board decided to hold interest rates steady this month.
“This will provide some time to assess the impact of the increase in interest rates to date and the economic outlook.”
Governor Lowe hinted that further tightening of monetary policy may be required to get inflation under control.
If you haven’t reviewed your home loan in a while, now is the time to talk to us and we’ll compare the market for you.
In other RBA news this week, the announcement that Governor Lowe is being replaced by his deputy Michelle Bullock.
Bullock becomes the first female RBA Governor and will start a 7 year tenure in September. This follows on from Governor Lowe’s speech this week that from 2024 the RBA will:
- The RBA will meet 8 times a year, reduction from 11
- The RBA governor will hold a press conference after each board meeting
- Separate boards for monetary policy and the governance of the Bank
- The monetary policy framework will be reviewed every five years
Home value movements
Every capital city except Hobart (-0.3%) saw dwelling values rise in June, according to CoreLogic data. Sydney continued to lead the way.
“Sydney home values increased another 1.7% in June, taking the cumulative recovery since the January trough to 6.7%,” CoreLogic’s research director Tim Lawless said. “In dollar terms, Sydney’s median housing values are rising by roughly $4,262 a week.”
Limited supply is the main factor driving up prices.
“Through June, the flow of new capital city listings was nearly -10% below the previous five-year average and total inventory levels are more than a quarter below average,” Mr Lawless said.
“Simultaneously, our June quarter estimate of capital city sales has increased to be 2.1% above the previous five-year average.”
Meanwhile, regional housing values also crept up, albeit at a slower pace compared to the capital cities.
| All dwellings | Auctions | Clearance Rate | Private Sale | Monthly home values change |
|---|---|---|---|---|
| VIC | 614 | 63% | 1064 | ▲ 0.7% |
| NSW | 716 | 58% | 1566 | ▲ 1.8% |
| ACT | 64 | 72% | 110 | ▲ 0.4% |
| QLD | 183 | 48% | 1068 | ▲ 1.3% |
| WA | 10 | 60% | 631 | ▲ 0.9% |
| NT | 3 | – | 25 | ▲ 0.5% |
| TAS | 0 | – | 158 | ▼ -0.3% |
| SA | 92 | 74% | 250 | ▲ 0.9% |
* Monthly Home Values figures as of 30 June 2023
* Australian auction results, clearance rates and recent sales for the week ending 9 July 2023
* The clearance rate is preliminary and current as of 11:30 pm AEST, 12 July 2023
Are you in the market to purchase your first home, next home or an investment property?
We can explain your borrowing power and which home loan product may be right for you. Get in touch today.