The days have started to get colder as we see the first glimpse of winter. We hope you are well and safe where you are.
Whilst autumn is usually a busy time for property auctions, we have seen a decline in numbers due to the temporary ban on onsite auctions and open inspections. When the COVID-19 restrictions start to ease, we should start seeing activity in the property market increase again. Read on to find out more.
The Reserve Bank of Australia (RBA) announced it has decided to keep the official cash rate unchanged at 0.25% at its meeting on the 5th May 2020. According to the RBA most lenders did not reduce their standard variable rates following the further cut to the cash rate on March 19, however some announced a reduction for interest rates on fixed rate loans and measures to defer interest and loan payments for distressed households. If you have had your home loan for a while, now is a good time to review it to make sure you’re getting a competitive rate.
We have seen a rise in home values for most regions in April despite the sharp drop in market activity due to the COVID-19 restrictions. Some cities have outperformed the six-month average pace of change. Perth (+0.2%), Adelaide (+0.4%) and Darwin (+1.7%) outperformed their six-month average pace of growth in April, demonstrating some resilience to weaker conditions. Overall however, the national monthly pace dropped by half from 0.7% in March to 0.3% which is still higher than our lowest recorded national index in June last year at 0.2%.
Early this month, coronavirus restrictions began to ease across the country. Some states and territories have started to allow open home inspections and onsite auctions while ensuring safety measures. CoreLogic Head of Research, Tim Lawless, said that we should start to see housing activity lift as the consumer spirit starts to bounce back to more normal levels.
* Monthly Home Values figures as at 30 April 2020
* Australian auction results, clearance rates and recent sales for the week ending 3 May 2020. The clearance rate is preliminary and current as at 10:23 am, 4 May 2020
While it’s too early to call the future market trend, we can look forward to the economy’s recovery once the pandemic ends. During this time, you may have questions regarding your current loan, or you might have plans to take this opportunity to explore new property options. Please know that Fornaro are here to assist you.
Contact Fornaro and we’ll assist you find the right solution for your current financial needs and future goals.