Women’s football dominated the press this month and the Matildas’ did the nation proud taking the team to their first World Cup semi-final, giving many a spring in their step. The other Spring is just around the corner and that means the busiest period for the real estate industry is almost here.
So, what’s been happening in the property world of late?
The Reserve Bank of Australia (RBA) left the cash rate on hold again this month at 4.1 per cent. Meanwhile, Australia’s housing values are still on the rise, though the pace of growth appears to be easing.
If a spring property purchase is on the cards, speak to us early about pre-approval on your finance.
Interest rate news
At its August meeting, the RBA left the cash rate unchanged at 4.1 per cent.
Inflation is coming down, but at 6 per cent, it’s still above the RBA’s target range of 2-3 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,” outgoing RBA governor Philip Lowe said.
“In light of this and the uncertainty surrounding the economic outlook, the Board again decided to hold interest rates steady this month.
“This will provide further time to assess the impact of the increase in interest rates to date and the economic outlook.”
Michele Bullock is set to take over as governor when Philip Lowe’s term expires on September 17.
With more change looming, it’s a good idea to review your home loan, especially if it’s been more than two years.
Home value movements
Housing values rose 0.7% in July – the fifth consecutive month of housing value recovery.
Brisbane and Adelaide led the way, with housing values up 1.4% across both cities.
Canberra was the only capital city to record a decline in values in July, down -0.1%, while values remained unchanged in Hobart.
Locally, Perth recorded a 1% increase for the month, showing a year on year increase of 3.4%. The increases are set to continue as Westpac last week predicts an additional 8% growth next year is believed then Perth prices are anticipated to increase by a further 8% next year. Shortage of stock due to increased migration and interstate investment increasing demand further.
Meanwhile, regional housing values crept up 0.2%.
* Monthly Home Values figures as of 31 July 2023
With more properties expected to come onto the market in coming weeks, it’s an exciting time of year for aspiring homeowners.
If you’re one of them, speak to us about getting your finance pre-approved.
We can explain your borrowing power and which home loan product may suit your needs. Get in touch today.