Spring Real Estate Update: Housing Market Trends and Pre-Approval
As spring approaches, the real estate industry gears up for its busiest period of the year. If you’re considering entering the property market, staying informed about recent developments is crucial. Here’s a snapshot of what’s been happening in the property world and how it might impact your plans:
Reserve Bank of Australia (RBA) Updates
The RBA has maintained the cash rate at 4.1%, a decision made at its recent meeting. Despite inflation dropping, it remains at 6%, above the RBA’s target range of 2-3%. According to outgoing RBA governor Philip Lowe, higher interest rates are contributing to a more balanced economic landscape, and the RBA is monitoring the effects of recent rate increases on the economy before making further adjustments.
Property Value Trends
Australia’s housing values continue to rise, though the pace of growth seems to be slowing down. In July, housing values increased by 0.7%, marking the fifth consecutive month of housing value recovery. Among capital cities, Brisbane and Adelaide experienced the most substantial growth, with housing values up by 1.4% in both cities. Canberra recorded a slight decline of -0.1% in values, while Hobart’s values remained unchanged. In regional areas, housing values increased by 0.2%.
Pre-Approval and Spring Property Purchase
If you’re considering a property purchase this spring, it’s wise to seek pre-approval for your finance. Pre-approval gives you a clear understanding of your borrowing power and allows you to confidently explore properties within your budget. With more properties expected to enter the market in the coming weeks, pre-approval positions you to act swiftly when you find the right property.
Review Your Home Loan
With changing economic conditions and new leadership at the RBA, it’s advisable to review your home loan, especially if it’s been more than two years since you last assessed it. Evaluating your home loan in light of current market conditions can help ensure that your mortgage aligns with your financial goals.
How We Can Help
As your mortgage broker, we’re here to assist you in navigating these developments and making informed decisions about your property and finance options. Whether you’re a first-time homebuyer or a seasoned investor, we can help you understand your borrowing capacity, explore suitable home loan products, and secure pre-approval for your upcoming property purchase.
Get in Touch
This spring is shaping up to be an exciting time for aspiring homeowners, and we’re here to guide you every step of the way. If you’re considering a property purchase, reach out to us today. We’ll provide the insights you need to confidently enter the real estate market and find the right financing solution for your needs.
Additional sources
CoreLogic RP Data Daily Home Value Index: Monthly Values
https://www.corelogic.com.au/our-data/auction-results
https://www.realestate.com.au/auction-results/