Are the boom times back for property?

  • Posted 19 Sep

Are the boom times back for property?

Sydney and Melbourne’s property markets are back in boom times, as clearance rates spike upwards – along with property values – following the RBA’s historic interest rate drop.

This weekend’s auction results in Sydney are expected to reach more than 70% again, following on from a spectacular 82.2% clearance rate – the highest since July 2015 – in recent weeks.

The overall market has seen clearance rates growing for the past weeks in Melbourne too, although not as dizzyingly high as Sydney. However, clearance rates are consistant in other major capital cities.

What’s causing the new boom?

The Reserve Bank of Australia’s decision on August 2 to lower interest rates to an all-time low of 1.50 per cent has created another surge in the property market. New data reveals that nearly 50 per cent of house sales in Sydney are over $1 million. What could your property be worth?The recent RBA decision to cut rates has also caused a race by borrowers to lock in some of the lowest home loan rates in Australian history and reducing their home loan repayments.

Is anywhere affordable?

However, in Canberra housing affordability is more reasonable, with a fall in prices by 0.15 per cent from June, although the rate cut is expected to breathe life into the market.Average house prices nationwide have steadily continued to increase since 2011, with a peak in the last quarter of 2015 before falling for the first time in three years to $695,788 in the cities, due to a drop in Sydney at the start of 2016.

What’s my property worth?

It’s the question that everyone is asking about their current property or a property they’re looking to purchase.Luckily, getting and in-depth property analysis is now as easy as submitting a single form and you can request yours by clicking here.

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