Happy Tuesday!
The media overall in the last week has sent some confusing messages to the public. Some articles reporting no growth in the housing market and some proposing huge growth. I think it would be fair to say that no one really knows what the next few months will look like.
Some things are certain, the home builder grant has certainly seen a spike in home and land sales in the last few months. I think it was always going to do that, especially now that the grant can be applied for and Dec 31 is looming over the horizon. Great news for builders and buyers alike. The HIA reporting that “in Australia’s five largest states, new home sales (contract to build) increased 61.3 per cent quarter-on-quarter in the three months to August 2020." You’ll agree that these are huge numbers.
The ABS also reported a drop in home values in the June quarter with only Canberra staying ahead of the curve with 0.8% growth, with an overall growth of +3.6% in the last 12 months. I am sure my real estate colleagues will agree a market driven by demand with a shortage of stock has seen a very buoyant market here in Canberra. Those 12 months figures only saw negative growth in Darwin -2.7% and Perth 0.2%, Sydney and Melbourne saw growth in the 8.0% ranges
The world of money and rates didn’t see any great changes in the residential market, though I have noticed aggressive pricing in the commercial space, with Bankwest offering a cracking 1.9% 3 year fixed rate and 2.0% on 4years! Loan to Value Ratio here needs to be 70% or less. Both NAB and ANZ are also quite aggressive here on both fixed and variable with ANZ offering 30 year terms on some properties. Certainly a great opportunity for commercial borrowing and refinances.
Have a fantastic week, let me know if you need any help.
JC
Scenarios and interest rates quoted above are suggestions and constitute general advice only.
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