This month the RBA decided to leave interest rates on hold once again, but the historical low cash rate of 1.5% still offers plenty of incentive for home buyers and investors alike.
As mentioned in last month’s market update, spring tends to herald an increase in the number of properties available on the market. Data released by CoreLogic confirms that the number of properties available for sale this month so far has increased dramatically.
The number of home buyers in the market across Australia’s capital cities also increased, with data showing a strong clearance rate of 79.2%. Compared to last year’s clearance rate of 69.5% across the capital cities, it’s becoming clear that more people are taking advantage of the record low interest rates.
The Australian Bureau of Statistics also reports that the number of new houses approved for construction remains high. The approval rate is 10.1% higher in August 2016 than it was in August last year.
90.5% of house sales were made at a profit according to the CoreLogic sales data, with capital cities performing stronger as compared to regional markets.
The ABS also reported that 14.1% of properties were purchased by first home buyers in July 2016, showing that more people are taking advantage of financial assistance grants and focusing on achieving their savings goals to get into the property market.
We hope you enjoy the tips and insights provided by some of our key Nieuvision staff in this issue.