August Update 2023

Spring is just around the corner and that means the busiest period for the real estate industry is almost here.

So, what’s been happening in the property world of late?

The Reserve Bank of Australia (RBA) left the cash rate on hold again this month at 4.1 per cent. Meanwhile, Australia’s housing values are still on the rise, though the pace of growth appears to be easing.

If a spring property purchase is on the cards, speak to us early about pre-approval on your finance.

Interest rate news

At its August meeting, the RBA left the cash rate unchanged at 4.1 per cent.

Inflation is coming down, but at 6 per cent, it’s still above the RBA’s target range of 2-3 per cent.

“The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so,” outgoing RBA governor Philip Lowe said.

“In light of this and the uncertainty surrounding the economic outlook, the Board again decided to hold interest rates steady this month.

“This will provide further time to assess the impact of the increase in interest rates to date and the economic outlook.”

Michele Bullock is set to take over as governor when Philip Lowe’s term expires on September 17.

With more change looming, it’s a good idea to review your home loan, especially if it’s been more than two years.

Home value movements

Housing values rose 0.7% in July – the fifth consecutive month of housing value recovery.

Brisbane and Adelaide led the way, with housing values up 1.4% across both cities.

Canberra was the only capital city to record a decline in values in July, down -0.1%, while values remained unchanged in Hobart.

Meanwhile, regional housing values crept up 0.2%.

All dwellings Auctions Clearance Rate Private Sale Monthly home
values change
VIC 730 63% 994 ▲ 0.3%
NSW 685 59% 1318 ▲ 0.9%
ACT 69 65% 75  -0.1%
QLD 164 48% 987 ▲ 1.4%
WA 5 496 ▲ 1.0%
NT 1 20 ▲ 0.3%
TAS 1 134 0.0%
SA 75 69% 237 ▲ 1.4%
* Monthly Home Values figures as of 31 July 2023
* Australian auction results, clearance rates and recent sales for the week ending 6 August 2023
* The clearance rate is preliminary and current as of 11:30 am AEST, 7 August 2023

With more properties expected to come onto the market in coming weeks, it’s an exciting time of year for aspiring homeowners.

If you’re one of them, speak to us about getting your finance pre-approved.

We can explain your borrowing power and which home loan product may suit your needs. Get in touch today.

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