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Treak Real Estate Property Update: September

What has the property market been up to in the last couple of months? Read on to find out!

National market changes

With borrowing rates both fixed and variable at all-time lows, the RBA is doing all that it can to negate the ongoing effects of the pandemic on buyer confidence. And it seems to be working. Per our ethical lender, Bendigo Bank: “While Melbourne and Sydney have just experienced their largest fall in housing prices since World War II with a 12-15% decline from 2017 highs, there are a few signs that it may now start to level off and hopefully find a base.”

Sydney market changes

The falling values of Sydney properties eased in August with a drop of 0.5% compared with a drop of 0.9% in July and a 0.8% fall in June. This easing along with the jump in auction clearance rates seems an encouraging sign.

Interest rates

RBA cash rate: 0.25%

At the last meeting of the RBA’s Board, on the 1st of September, it was unsurprisingly decided that the cash rate target of 0.25% was to remain unchanged. According to property group PRD’s economist Diaswati Mardiasmo, one of the reasons why the RBA has held firm on the cash rate is to offer some stability amongst our current instability.

In other news, the RBA has extended its Term Funding Facility - a form of low cost funding - and has said that it is “considering further monetary measures.” Our read of such an ambiguous statement? More monetary easing might be on the horizon, to help people get through these exceedingly tough times, we are eager to see what happens at the next RBA meeting.

Auction clearance rates

NSW auction clearance rate: 80%

The most recent auction clearance rates, supplied by on the 27th of September, put the rate in NSW at 80%, a particularly strong result amid ongoing uncertainty.

With Victoria still in lockdown and many other markets still reeling from the effects of COVID-19, it’s somewhat difficult to put NSW's numbers in a national context. One thing is for sure: NSW vendors find themselves in what is comfortably the most active auction market in the country.

New home enquiries

New home enquiry index (National): - 0.3%

New home enquiry on a national level was down 0.3% last week, while NSW is one of the few real estate market measures that has been entirely unaffected by COVID-19 and its fallout. Being one of the nation’s most elite and consistent performers, enquiries more than doubling from this time last year.

Regarding the national new home market, REA Insights offered the following read: “Despite the recent reduction in the index, demand is much higher than it was a year ago, indicating that stimulus, historic low mortgage rates and restrictions on how people can spend their money (can’t holiday overseas or interstate in some circumstances) seems to be driving a much higher appetite for housing than we were seeing 12 months ago.”

We looking forward to seeing you next month for our next property market update.

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