The Reserve Bank has kept interest rates on hold today.
The decision came after deep cuts at the bank’s two previous meetings.
The official interest rate remains at 3.5 per cent.
This weekend in Melbourne
This Weekend in Melbourne
Good afternoon everyone, we hope you’ve had a great week! We’re looking forward to the weekend with plenty of open for inspections scheduled around the city. From Bentleigh to East Melbourne, Elwood to Southbank, Hampton to Kensington, I’m sure you’ll find something to suit your budget and taste. Around the city, the following highlights have caught my attention:
Red Nose Day is today, Friday the 29th of June celebratingit’s 25th Anniversary. Red Nose Day began to raise awareness for SIDS and Kids, so please give generously to support the research of tragic sudden deaths in infants. You can buy merchandise sold locally, give online at http://www.rednoseday.com.au/donation/ or for the cost of a local call, call to donate on1300 173 366.
Bubbles and Brunch at the Domaine Chandon Winery is the perfect weekend to spend with your significant other or friends this winter. There’s nothing quite like the charm of Coldstream inWinter. The winery itself is a culinary delight so brunch is sure to impress! For more information on the winery, menu and tours please clickhere.
As always, the AFL lights up Melbourne from the MCG toEtihad Stadium. This weekend we see Carltonvs Hawthorn on Friday night at the G kicking off at 7:50pm. Saturday lunch is CollingwoodvsFreemantle at the G again kicking off at 1:45pm then that eveningEssendon takes on the Western Bulldogs atEtihad kicking off at 7:40pm. Then the last game for the round is where Saint Kilda and the North Melbourne boys play it out atEtihad kicking off at 4:40pm.
Of course, Dingle Partners have a full schedule of open for inspections, please visit our website for further details.
Have a safe weekend, and if you’re parents, good luck over the next two weeks over school holidays.
Warm Regards,
The Team at Dingle Partners Real Estate
Congratulations Melbourne!
Congratulations Melbournites, we have passed through the coldest and longest days of Winter! We’re almost half way through the year with the end of financial year just around the corner. If you’ve been waiting for the Spring to sell, it’s time to start preparing now. At Dingle Partners Real Estate, we can match a property consultant specialist to your area to ensure the best possible result. We will design your sale or Auction campaign closely with you and provide you with all the tips you need to be competitive in the current market.An appraisal is more than just a property valuation.
Although it’s complimentary, we’ll always take the long road and go the extra mile. We’ll suggest subtle ways you can improve the appearance of your property without breaking your budget, discuss the best price range to attract a larger buyer interest and answer any questions you may have to help make the process a smooth, professional and successful outcome.
If we can help in any way, please call the office or email today to arrange your complimentary appraisal.
Warm Regards,
The Team at Dingle Partners Real Estate
customerservice@dinglepartners.com.au
Melbourne Auction Results
Over the weekend Melbourne reported a total of 553 Auctions with 315 sold under the hammer and 238 being passed in, 148 of these were sold via a vendors bid.
Dingle Partners is happy to report the successful Auction of 2206/610 Collins Street, Melbourne by Monique Depierre.
Currently the Auction clearance rate is sitting at 57%, 4% higher than this time last year.
Please find a list below of the top 5 apartments to sell across Melbourne. If you’re considering going to Auction, selling or would like a free market appraisal, please call the one of our expert sales consultants today on 03 9614 6688 at Dingle Partners Real Estate.
TOP 5 APARTMENTS
1. 30A Parslow Street, Malvern $1,980,000
2. 2/61 Well Street, Brighton $1,950,000
3. 1/50 Adeney Avenue, Kew $1,210,000
4. 101/150 Peel Street, North Melbourne $945,000
5. 2/38 Lawrence Street, Brighton $900,000
Interest Rate news
The Reserve Bank has cut interest rates by 0.5 per cent.
The 50 basis point fall comes on the back of evidence the economy is struggling with weaker-than-expected inflation figures released late last month.
The official interest rate is now 3.75 per cent.
It is good news for mortgage holders who were earlier this year hit with out-of-cycle rises by many lenders.
“This is quite a heavy cut and the Reserve will be hoping that it has maximum impact,” says Domain property expert Carolyn Boyd.
Each 0.50 per cent drop in interest rates slices about $120 off the monthly interest cost of an average Australian mortgage.
All eyes will be on the financial institutions to see if they follow suit, says Boyd. It is possible lenders could pass on a smaller proportion of the official drop to their own customers.
At least one bank will hold off announcing a decision for more than a week with the ANZ Bank set to release its move next Friday, the second Friday of the month.
If lenders do make cuts, Boyd says it is a smart idea for borrowers to maintain their current repayment levels.
“Many institutions don’t automatically adjust repayments down in line with lower rates, and if you think yours might, you should speak with them and ask for your repayment amounts to be kept as they are,” says Boyd.
“It is inevitable that rates will rise again in the future, so this is a golden opportunity to pay some extra money off your loan if you can afford to do so.”
Interest Rate Announcement
The Reserve Bank has announced that interest rates will be kept on hold for now.
This decision was expected given there has been little change in the global outlook and in Australia’s own economy since the Reserve Bank met last month.
Rates will remain at 4.25 per cent for the next month. Some experts have, however, predicted a rate cut could come later in the year.
For more information or if you have any questions please call to speak with one of our Estate Agents today.
Market Round Up
With the festive season and summer holidays well and truly behind us, the 2012 property market is back in full swing. Property Profile Group members across Melbourne and regional Victoria are reporting that Open for inspections are welcoming bigger crowds than in late 2011 and buyers are outwardly less hesitant. The number of property sales over the weekend of 11/12 February was also a positive start to the year and hopefully an indication of things to come.
There were 276 auctions held across Melbourne last weekend of which 181 were sold, 95 were passed in, 60 of those on a vendor’s bid. This equates to a clearance rate of 66%. The clearance rate for the 4/5 February weekend was 54% and 63% for the same weekend last year.
The top selling house was in Stevenson Street, Kew and it fetched a healthy $3 million. Other top performing properties were sold in Armadale, Moonee Ponds, Alphington and Fitzroy North. The top selling apartment was sold in Wellington Parade South in East Melbourne for $1.65 million. And the most affordable home was sold in Narre Warren. It fetched $300,000.
Private sales also performed well over the weekend with 519 properties sold. This equated to almost $252 million in total private sales across the city.There are 1500 auctions scheduled between now and the end of February. The results of these sales should provide a clearer indication of the state of the market.
(Sales data sourced from the REIV)
Auction Summary 2011
The property market was softer in 2011 but auction figures indicate a solid performance with close to 30,000 properties going under the hammer across Melbourne.
The overall clearance rate for auctions in 2011 was 56% compared to 71% last year, 81% in 2009 and 63% in 2008. The highest clearance rate in any week was 65% in the week ending 13 March and the lowest was 49% in the week ending 20 November.
As at 19 December there had been 28,807 auctions held in total. The number of auctions exceeds the number held in both 2009 and 2008 but is fewer than 2010, when there were 32,497 residential auctions. The total value of auction sales was $11.6 billion compared to $16.8 billion in 2010, $12.1billion in 2009 and $10.2 billion in 2008.
From an individual suburb perspective, the highest clearance rate was recorded in Wantirna South, where 82% of homes sold. It was followed by Abbotsford, Balaclava, Gladstone Park and Warrandyte as the top five suburbs when ranked by clearance rate.
However, from the perspective of total sales by auction, Richmond had the most, with 336 sales at auction and a very strong clearance rate of 73%. It was followed by Melbourne, Bentleigh East, Hawthorn and Reservoir as the top five suburbs when ranked by volume of sales.
Australia’s still raising the real estate roof
AUSTRALIAN housing markets displayed a generally resilient performance in 2011, reflecting the inherent security of residential real estate in this country, particularly when compared with housing markets in similar open-market economies.
The year was always set to be a period of correction for Australia’s housing markets following the unsustainable growth in house prices recorded through 2009 and 2010.
Between January 2009 and June 2010, Melbourne’s quarterly median house price rose by nearly 30 per cent, with Sydney’s up by almost 20 per cent over the same period. All other capitals also recorded big rises in house prices over those 18 months.
Housing affordability crashed by the end of 2010, with surging house prices and rising interest rates combining to send buyers into hibernation.
Australian Property Monitors data has revealed that capital city housing markets have generally performed encouragingly in 2011 despite the pressure on housing affordability generated in 2010 and a mixed economic performance in 2011.
The national median price for houses over the year to October 2011 fell by just 1 per cent compared with the previous year, with median unit prices rising by 1.2 per cent over the year. The 2011 result follows a 17 per cent rise in the national median house price over the year to October 2010 and a 12.2 per cent rise in the median unit price over the same period.
The best capital city performers were Melbourne and Sydney, where annual median house prices rose by 1 per cent. Darwin and Adelaide house prices were flat and Hobart down 1.5 per cent.
The worst performers over the year were Brisbane and Perth, where annual median house prices fell by 3.5 and 4.75 per cent respectively.
The unit market clearly outperformed the housing market over the year to October 2011, with Sydney recording median unit price growth of 2 per cent followed by Melbourne and Darwin up by 1 per cent. Brisbane and Perth were again the underperformers, with annual unit prices falling by 1.3 per cent and 3.5 per cent respectively.
Bureau of Statistics data confirms the solid performance by Australian housing markets in 2011, with the number of owner-occupier housing loans rising by 2.4 per cent over the 10 months ending October compared with the same period in 2010.
New South Wales was the best performer with an increase of 8 per cent, with Western Australia surprisingly in second place with growth in home loans of 7 per cent over the year, courtesy of a surge in the past three months – indicating perhaps growing late-year momentum in that market.
By contrast, the number of home loans approved in Queensland in the year to October fell by 8.4 per cent compared with the same period in 2010.
The nature and strength of Australian housing markets in 2011 was always to be determined by the underlying supply and demand characteristics of individual markets and the strength of national and local economies.
In addition to the affordability barriers created by the prices surge and interest rate rises of 2009 and 2010, housing markets have had to encounter unexpected headwinds in 2011. The impact of the central Queensland and Brisbane floods was not restricted to the local housing markets. National economic output was affected through reduced coal exports and the cost of the reconstruction levy. Higher prices for fruit and vegetables also affected household budgets nationally.
The impact of catastrophic natural disasters on the national psyche and confidence cannot be underestimated, particularly given Australia’s recent propensity for financial conservatism, especially when it comes to buying or borrowing.
The Japanese earthquake and associated tsunami in March also contributed to lower economic growth and reduced consumer confidence.
Stalling economic growth in 2011 was also a product of continued mixed performances by various industry sectors, particularly retail, manufacturing, tourism and construction. As a consequence, all capitals recorded rises in unemployment through mid-year. All these factors combined to subdue consumer capacity and confidence and consequently dampen home buying activity through 2011.
Most Australian capital city housing markets are, however, set to record growth in median prices over 2012 as the national economy gathers strength. The Australian economy is primed to expand strongly on the back of a significant resources boom with the Organisation for Economic Cooperation and Development predicting gross domestic product will increase by 4 per cent over the year.
Melbourne, Adelaide and Hobart will be the underperformers in 2012, with median house price growth of between zero and 5 per cent.
Melbourne’s balanced housing supply and demand mix offers buyers a wide choice and it remains the most tenant-friendly capital city rental market. Affordability barriers, however, remain for home buyers.
With the Victorian economy showing signs of running out of puff, particularly as the recent construction boom abates, the housing market is set to drift sideways though 2012. The possibility remains of some growth in median house prices by the end of 2012 as the impact of a strong national economy filters through.
Dr Andrew Wilson is senior economist for Australian Property Monitors.
Source: BusinessDay