• Property market update April 2019

    Property market update April 2019

    Getting smart with debt while rates are low

    Low interest rates provide a great environment to pay down your home loan faster, or borrow to take advantage of growth opportunities. 

    It’s now been more than two and a half years since the RBA cut the official cash rate to 1.5% in August 2016. 

    Not only is that a record low interest rate, it’s now the longest period rates have been left unchanged since the cash rate was introduced in 1990. 

    What’s more, falling house prices are supporting the case to keep rates on hold even longer. 

    Looking at the numbers, the average house price in our national cities fell by 8.2% in the 12 months to March 2019. As you can see below, the results varied significantly across the country – ranging from a 6.0% gain in Hobart to a 10.9% drop in Sydney1

    It’s hard to predict how long these trends in house prices will continue, or how long the RBA will keep interest rates where they are. But we do know the current environment provides a great opportunity to get smart with debt. 

    That could mean making extra repayments to pay your home loan off sooner, or buying an investment property in an area where prices have been falling, or even using your equity to add value to your home through renovations.

    In this RAMS Talk, you’ll see some great strategies to get money smart. While there’s never a bad time to get savvy with your home and your home loan, there’s rarely been a better time to do it. 

    Median dwelling (house/unit) prices at 31 March 20191 

    City Median dwelling price (house and units) Capital growth last 12 months
    Sydney $782,473 -10.9%
    Melbourne  $624,425 -9.8%
    Brisbane $489,832 -1.3%
    Adelaide $426,990 0.8%
    Perth $442,716 -7.7%
    Darwin $400,316 -6.8%
    Hobart $464,168 6.0%
    Canberra $595,212 3.1%
    Combined capitals $597,860 -8.2%

    1CoreLogic Home Value Index, 1 April 2019

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  • Disclaimer:

    This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.