Buyers are increasingly enjoying more choice, with a growing number of properties listed for sale in many parts of Australia.
The number of properties for sale across the country in July was 0.6% higher than the month before, according to PropTrack.
Even better, listings in July were 4.9% higher than the year before, which is the largest year-on-year increase since 2010.
As always, conditions vary among the capital cities:
- Hobart listings in July were 70.0% higher than the year before
- Sydney up 30.7%
- Canberra up 24.8%
- Darwin up 14.4%
- Melbourne up 10.0%
- Perth up 4.6%
- Brisbane down 0.7%
- Adelaide down 3.6%
If you are looking to buy a property, it’s important to arrange a pre-approval before you begin the auction and bidding process. That way, you’ll have peace of mind, knowing your spending limits. This also places you in a position of strength when sitting at the negotiating table, as vendors may be more likely to accept an offer, knowing you have finance in place.
Why some fixed rates are falling
While variable interest rates are continuing to rise, and will almost certainly increase further, some lenders are cutting their fixed rates.
Lenders started increasing their variable rates in May, once the Reserve Bank of Australia (RBA) began increasing their cash rate. However, lenders increased their fixed rates much earlier, in anticipation of future rate hikes.
RBA data shows that interest rates for fixed loans with terms:
- greater than three years have been trending up since December 2020
- of three years or less have been trending up since November 2021
Recently, a number of lenders have concluded that the RBA may not increase the cash rate as they originally expected and as a result have started to reduce fixed interest rates.
If you are considering switching your variable rate loan to fixed, we would welcome the opportunity to discuss your objectives and present a number of options.
Property industry expected to play its part in emissions reductions
The government’s new climate change legislation will have significant implications for Australian real estate, assuming it gets approved by Senate.
The Climate Change Bill 2022, which has been approved by the House of Representatives, will enshrine into law an emissions reduction target of 43% from 2005 levels by 2030 and net zero emissions by 2050.
Real Estate Institute of Australia president Hayden Groves said that while the legislation does not specifically regulate residential real estate, he expects developers will pay more attention to energy efficiency measures and will also become more transparent about the energy efficiency of their buildings.
“And with that, the government hopes, so too will consumer preference and markets. Already, there is an emerging body of research that shows that homes demonstrating sustainable features currently command a premium.”
Mr Groves also noted that the government had called its emissions reductions targets a “floor, not a ceiling”, which might lead to further sustainability policies or investments in the future.
If you are buying, re-financing or have any questions, contact me on the below information.
TAG Finance and Loans
Sal Cinque | CEO
03 9886 0800 | loans@tagfinancial.com.au
Disclaimer: The information contained on this page is general in nature. Professional advice should be sought before acting on any aspect on this page. TAG Finance and Loans Pty Ltd ABN 25 609 906 863 Credit Representative Number 483873 National Mortgage Brokers Pty Ltd ABN 88 093 874 376 Australian Credit License 391209.