• Melbourne Mortgage Advice

Welcome to our January 2020 Newsletter

Updated: Jun 29

Happy new year! How was your holiday break? We hope you had a great celebration with your loved ones!

Welcome to our first newsletter for 2020. With both the new year and summer holidays, our property markets are typically quiet. But if you are looking to take advantage of this quiet season, we are always available to help you out. This can be a perfect time to do some property research, look into financing options, or set your property plans and budget. There will also be less people looking at properties during this period, so you can take your time looking around and talking with agents. Get in touch with us to get started.


Interest rate news

In 2019, we saw three cash rate cuts to historic low rates. The Reserve Bank of Australia (RBA) didn’t meet this month, extending the seriously low official cash rate of 0.75% until at least the next meeting on February 4. With mortgage rates also at record lows, we see lenders offering competitive loans.  Speak to us if you wish to review your options and compare deals that would make the most sense for your current financial condition.

This year, industry experts predict that we will likely see an interest rate cut at the next meeting in February, or least in the first half of the year. However, they also expressed that it is also possible that the RBA will look for other means to accelerate economic growth. Regardless of future cash rate announcements, the low rates will likely continue this year in order to aid the economy’s growth.


Home value movements

In December, there was a 1.1% increase in national dwelling values over the month, and a 4% increase over the quarter. This denotes the fastest growth rate for national dwelling value over any three-month period since November 2009.


In the second half of 2019, we saw the housing market bounce back. The national dwelling value index has recovered by 4.7%, with Sydney and Melbourne driving the recovery. According to CoreLogic, Sydney was the best performing capital city in the last quarter of 2019 despite having the lowest rental yields. Darwin had the highest rental yield despite being the weakest performing capital city, in terms of dwelling values, during that period. Perth has also seen improvements during the last few months of 2019, experiencing its first month-on-month dwelling value increase at the end of November.

Australian dwelling values grew 2.3% over the year 2019. Sydney and Melbourne saw the highest annual capital gain, recording at 5.3% and a 5.27% dwelling value increase, respectively. This is followed by Hobart at +3.94%, Canberra at +3.09%, and Brisbane at +0.34%. Meanwhile, Darwin, Perth, and Adelaide recorded an annual decline, at -9.69%, -6.80%, and -0.19%, respectively.


Looking forward to 2020, the future looks bright for house prices in all capital cities. We may see the housing markets’ recovery to continue, with the number of dwelling sales expected to increase. Lower mortgage rates will also likely drive an increase in buying demand.


New year, new property – we can help!

The start of the year can also be a perfect time to start planning for your new home or investment property. Speak with us today so we can assist you with getting started on your property goals!


Sources: https://www.corelogic.com.au/news/housing-rebound-spreads-perth-national-housing-values-mark-five-months-consistent-growth https://www.corelogic.com.au/news/corelogic-december-2019-home-value-index-strong-finish-housing-values-2019-corelogic-national https://www.corelogic.com.au/news/housing-affordability-has-improved-over-past-ten-years-across-most-regions-australia https://www.corelogic.com.au/research/monthly-indices https://www.realestate.com.au/auction-results/ https://www.realestate.com.au/news/reserve-bank-holds-firm-on-rates-amid-mixed-data/ https://www.rba.gov.au/monetary-policy/rba-board-minutes/2019/2019-12-03.html

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