Rateseeker Round-up: September Property News

Rateseeker Round-up: September Property News

The first month of spring was jam-packed with updates to the lending landscape. From a massive jump in annual sales to an uptick in Aussies using brokers, there was plenty happening in the property market this September.

Missed the news? We have you covered. Here are the four biggest updates you need to know about from the past month.

Property sales hit 17-year high

Despite a number of capital cities being in lockdown, the property market has remained strong throughout the year. CoreLogic reported that almost 598,000 residential properties have been sold so far to August. What’s more, property sales in August were 42% higher than the year before and 24% higher than the 20-year average.

QLD recorded the highest surge of properties on the market, followed by WA and NSW. All of the remaining states and territories also recorded an increase in houses and units for sale, with the exception of TAS and the NT:

• QLD = up 28.9% on the 20-year average
• WA = up 28.6%
• NSW = up 25.3%
• ACT = up 24.8%
• SA = up 23.4%
• VIC = up 20.5%
• TAS = down 3.3%
• NT = down 12.0%

Competition in the property market is fierce right now, and this trend is likely to continue in the future. As such, it’s more important than ever to get your finances in order if you want to beat out the competition. Get in touch with us today to find out how we can help you secure your dream home.

Homeowners pay less on fixed home loans than variable loans

August data from the Reserve Bank of Australia has shown that owner-occupiers on three-year fixed loans were paying 1.26 percentage points less on average than those on the discounted variable rate.

However, this trend may change in the future, with the RBA signalling that it will start to increase official interest rates once the economy strengthens.

Wondering whether to select a fixed or variable home loan? Read our article to figure out which option is best for you.

Australian households saving more during lockdown

If you’ve been saving more of your income during the pandemic, you’re not alone.

The most recent data from the RBA has revealed that Australian households have been saving 9.7% of their income on average. What’s more, the saving rate is projected to increase to approximately 15% by the end of September.

According to the Housing Industry Association, the fact that people are saving more is one of the main drivers behind the strong housing market. With increased household savings, more Australians have been able to squirrel away enough for a home loan deposit.

Wondering how much you can borrow? Use our free borrowing power calculator to find out.

Australians prefer to work with mortgage brokers over banks

With new laws requiring brokers to legally act in the best interest of borrowers, an increasing number of Aussies are turning to these third parties to settle their home loans. Mortgage brokers settled 59% of all new home loans in the June 2021 quarter – an increase of two percentage points compared to the June 2020 quarter.

“[The increasing popularity of brokers reflects] the ever-increasing trust and confidence consumers have in their broker and the unrivalled best interests duty a mortgage broker provides”.

Mortgage & Finance Association of Australia

A mortgage broker can help manage the entire home loan process from start to finish, including:

• Finding and recommending the sharpest rates on the market
• Assisting you with your home loan application
• Helping with settlement once you’ve secured your dream home
• Helping you refinance your loan to secure a better deal

Learn more about the benefits of going with a lender, broker, or online platform here.