The property market is gaining momentum on the back of better borrowing conditions and consumer sentiment.
Consecutive rate cuts by the Reserve Bank of Australia (RBA) and APRA’s relaxation on home loan rules effective immediately, meaning it will now be easier for home buyers to take out a mortgage.
The last month of auction results is the clearest indication of buyers’ desire to get into the market and take advantage of rates which are at all-time lows and capitalise on property prices which have stabilised after the rollercoaster of the past 2 years.
Locally South Australia achieved an auction clearance rate of 66%, while nationally auction clearance rates were 68.9%, the fourth week in a row that the auction clearance rates were above 60%.
Historically, mid-winter is a quieter time in the market given the weather and school holidays getting underway. With volume (properties on the market) being low, and buyers coming out in force demanding quality properties we may see a buoyant second half of the year.
In Adelaide property values continue to grow, even Melbourne and Sydney experienced slight growth for the first time since 2017, as per CoreLogic June figures.
With positivity flowing back into the market and the government relentlessly trying to stimulate the economy, we should see a further pick up in clearance rates and even more buyers entering the market.