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October Market Update

What an interesting spring selling season it’s shaping up to be.

This month, RBA governor Michele Bullock kept the cash rate on hold while taking the helm for the first time.

Meanwhile, the demand/supply imbalance continues to push property values higher in many markets.

If you’re looking to buy this spring, it’s important to have your pre-approval in place, so that you can pounce on the right property when it comes your way. Talk to us today.

Interest rate news

All eyes were on new RBA governor Michele Bullock this month to see where the cash rate would go under her leadership.

As many expected, the board decided to press pause for a fourth consecutive month, leaving the cash rate on hold at 4.10 per cent.

We saw the monthly Consumer Price Index (CPI) indicator rise from 4.9 per cent annually in July to 5.2 per cent in August. The RBA will no doubt be waiting to see the September quarter inflation data, due to be released on October 25, before making their November cash rate decision.

Another hike would put already struggling homeowners under further pressure. According to Roy Morgan’s latest mortgage stress survey, 29.2 per cent of owner-occupied households with mortgages are now in stress – the highest share since May 2008.

Meanwhile, an estimated $52 billion worth of fixed-rate mortgages are expected to expire over the six months to December 31.

Many of those borrowers are set to jump from ultra-low rates of around 2 per cent to variable rates of around 6 per cent.

If you’re already battling with rising repayments on your variable home loan, now is the time to chat to us about your options.

Home value movements

Housing values continued to rise in all markets except Hobart in September. Overall, home values were up 0.8 per cent, according to CoreLogic data.

Adelaide led the way, with property prices up 1.7 per cent, followed by Perth (1.3 per cent) and Brisbane (1.3 per cent).

Quarterly data shows the upswing in Australian housing values has lost some steam, with a 2.2 per cent rise in CoreLogic’s national Home Value Index in the September quarter, compared with a 3 per cent rise through the June quarter.

CoreLogic’s research director, Tim Lawless, said the performance of the housing market in each city reflected the underlying supply dynamic.

“The three capitals recording the highest capital gain each have advertised supply levels that are around 40 per cent below their previous five-year average,” he said.

“Advertised supply levels across Hobart, where values are still trending lower, have been holding at above average levels since June last year and were almost 40 per cent above its five-year average.”

Meanwhile, the combined regional markets saw a 1.1 per cent rise in property values through the September quarter.

All dwellings Auctions Clearance Rate Private Sale Monthly home
values change
VIC 979 64% 1134 ▲ 0.4%
NSW 887 57% 1163 ▲ 1.0%
ACT 73 48% 75  0.2%
QLD 196 45% 884 ▲ 1.3%
WA 10 20% 553 ▲ 1.3%
NT 2 50% 32 ▲ 0.1%
TAS 1 113  – 0.6%
SA 77 71% 228 ▲ 1.7%
* Monthly Home Values figures as of 30 September 2023
* Australian auction results, clearance rates and recent sales for the week ending 8 October 2023
* The clearance rate is preliminary and current as of 10:35 a.m. 8 October 2023

With the cash rate on hold, it’s a good time to consider buying your own home, your next home or an investment property with an appealing rental return.

Get in touch today and we’ll run through your finance options.

Additional sources
CoreLogic RP Data Daily Home Value Index: Monthly Values

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