eNews - April 2017
This month, the Reserve Bank of Australia decided to keep the official cash rate on hold again at 1.5%. The decision followed an announcement by the Australian Prudential Regulation Authority on Friday 31 March that financial institutions restrict new interest-only property lending to 30% of their total residential mortgage lending, in a bid to manage heightened risks in the property market.
Many lenders adjusted rates outside of RBA movements this month and raised rates on both owner-occupier and investment loans.
Home prices in Australia’s biggest cities have jumped 3.7% since the start of the year and Melbourne and Sydney continue to lead the way.
Perth homeowners are set to enjoy the first increase in property values in more than three years. Moody’s and CoreLogic believe that, after losing value since early 2013, there are signs Perth prices could increase almost 3 per cent this year. They are even more bullish for apartments, tipping values to increase 5.6 per cent through this year.
Analysts with the two organisations said the value of Perth houses was falling at an annual rate of 7 per cent late last year but this was moderating. “Perth’s housing market is showing signs that the worst is behind, and value gains could be seen in 2017,” they said. The same analysts believe the soaring markets of Sydney and Melbourne would also quieten this year.
With interest rates remaining low, now is a great time to buy your first home or invest.
Until next time.