“The rate that stopped a nation”.
Hi Guys, it’s Dean OBrien from OBrien Real Estate with another edition of the Property News for 2020 where real estate information is on the house.
The positive sentiments in the market over the last 4 weeks have amplified over the last week with many traffic lights changing from amber to green. Here’s the snapshot of what happened:
The Reserve Bank believes growth is returning to the economy but in a bid to stimulate business leading monetary policy has been eased with interest rates cut by .15% to .1%. The big 4 banks have said they will not drop the rates on their standard variable home loans, declaring they will cut fixed home loans and business lending rates.
Corelogic released it’s October Home Price Report with all capital cities across the nation except Melbourne posting increases, with the average increase being .4% with Melbourne posting a decline of .2%. Regional Victoria posted a combined dwelling increase of .5% and with Regional Victoria opening up to Metro Melbourne from November 9 it will be interesting to see how prices fair in the coming months. No doubt with the recent tax cuts coupled with this week’s rate cut and the success of the HomeBuilder scheme we can expect dwelling prices to trend upwards.
- The Australian Bureau of Statistics reported nationally a 15.4 per cent leap in the number of dwelling approvals with Victoria at 12.4 per cent.
- The value of housing construction loans during September rose by 25.3 per cent rise in which shows the effectiveness of the Government’s stimulus in the HomeBuilder program.
- With consumer confidence growing retail spending increased significantly in the September quarter with figures released by ABS showing in real terms (excluding inflation) retail trade rose by a record 6.5 per cent.
Private sales reported across Victoria increased strongly last week up by 377 sales from week to 1590 sales with the auction clearance rate also up at 70.15%. Across the OBrien Network for the month of October, we had a very strong listing month with 376 new listings, our average days on market for our properties declined from 35 to 27 days, and we achieved an average sale price of $819,000 with a top price of $2.14 million.
Lastly, a key issue resulting from the pandemic has been a significant increase in mental health illness. The federal government acknowledged this by doubling the number of rebated psychology sessions to 20 sessions on Medicare but there is more we as people can do to support each other. OBrien is a strong supporter of mental health and I would like to acknowledge the fundraising from the people in OBrien Real Estate in raising in excess of $15,000 in October to support the magnificent programs within Beyond Blue, the Love Me Love You Foundation and through our very own OBrien Real Estate foundation.
That’s all for this week, I’m Dean OBrien and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.