Property Report - June 2019
The Reserve Bank’s decision to spark an interest rate cut has had a positive effect on market conditions.
While these cuts have not been passed on by all banks, now with the ability to secure finance on rates as low as 3.44% buyers have a lot more options. It is great to see a bit more oxygen in the market, in our local area especially.
The months of June and July have seen great results at Integrity across the board, with a new record set on half an acre for one. In line with the trend of the last few months, regional Victoria has outperformed metropolitan Melbourne and continues to do so. In a recent report by the Housing Industry Association, Melbourne has been awarded 12 of Australia’s Top 20 building growth areas as well as 18 of the 19 regional Hotspots for Victoria. This is in keeping with the consistent interest in the Kinglake Ranges and Melbourne’s North East where buyers are desperate to relocate for a relaxed lifestyle change.
However, despite positive changes to the lending atmosphere, buyers should not be complacent when going for their finance. It is recommended that they organise these details well before they begin to look.
For anyone buying in the Kinglake Ranges, it is worth having a coffee with one of our excellent local brokers, like Nicole Sevenich from Buyers Choice (0412 169 035). Brokers, like real estate agents, should be proactive and communicative. This is more important now than it ever has been, as the difference between getting finance or not can be marginal. (Vendors should also be aware of this as a key sticking point for sale processes at the minute).
While it may be overwhelming to read about “market trends” and “interest rate cuts”, here is a bit of insight for free. If you are considering selling your property, but you are thinking of waiting for the Spring, be cautious of listing for sale simply based on weather. At the time of this report, the Australian Prudential Regulation Authority (APRA) is considering loosening what is called the “assessment rate” on loans which means that buyers may soon be able to access more funds.
This will be the last of a string of good news that should elevate softening conditions. So if you are considering listing your property but are unsure of when, contact us on 5786 2033 to chat about a strategy. You have already done the right thing by consulting the Property / Finance section of the Mountain Monthly. There is great advice here from step-by-step tips on preparing the paperwork for sale, through to the Finance facts. Now, take the next step and give us a call at Integrity to start things off in the strongest way possible.