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  • Property market update September 2019

    Property market update September 2019

    RBA springs into action

    Back-to-back rate cuts from the RBA have helped lift the mood, and prices, in the property market. 

    After leaving interest rates unchanged for almost three years, the RBA dusted off the pruning scissors with back-to-back rate cuts in June and July – dropping rates to a new record low of just 1.00%.

    The twin rate cuts breathed new life into the Winter property market, with the national auction clearance rates lifting back above 60 percent in July for the first time over a year1

    The change of sentiment has started flowing into property prices too. The national average house price in our capital cities rose by 1.0% in the August quarter, with Sydney (+1.9%) and Melbourne (+1.8%) leading the charge2

    While these gains are relatively small compared to the 12-month average of -5.9%, and have coincided with low stock levels3, it seems the tide may be shifting. This picture should become clearer as more properties traditionally come onto the market in Spring.

    Of course, rate cuts aren’t just good for property prices. They can also provide a great opportunity to give your finances a Spring clean. 

    Is it time to declutter your life by consolidating your debts? Maybe use the equity in your home to get that new kitchen you’ve been thinking about? Or simply use this as a chance to pay down your debts faster?

    This RAMS Talk will hopefully give you some food for thought around keeping life simple. I hope you enjoy it and I look forward to updating you again next quarter. 

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

    City Median dwelling price (house and units) Capital growth last 12 months
    Sydney $790,072 -6.9%
    Melbourne  $626,703 -6.2%
    Brisbane $485,493 -2.1%
    Adelaide $428,203 -1.1%
    Perth $437,558 -8.8%
    Darwin $388,232 -9.7%
    Hobart $465,535 3.1%
    Canberra $592,870 1.2%
    Combined capitals $597,072 -5.9%

    1 https://www.corelogic.com.au/news/national-auction-market-preview-14-july

    2 https://www.corelogic.com.au/news/national-dwelling-values-record-first-rise-october-2017

    3 https://www.realestate.com.au/news/property-market-update-buyers-are-back-stock-levels-are-low/

     

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  • Disclaimer:

    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

    The views and opinions expressed in this article are those of the author alone and do not necessarily represent the views or opinions of RAMS Financial Group Pty Ltd ABN 30 105 207 538 (RAMS),  Westpac Banking Corporation ABN 33 007 457 141 (Westpac) or their related bodies corporate. This article is strictly for information purposes only and neither RAMS, Westpac nor any of their related bodies corporate make any representation as to the accuracy or completeness of the information in this article or endorse the views expressed in it.