National Property Market Update

Curious to know what is happening in the property market from an Australian wide perspective?

An update below from Ray White's CEO of Growth, Mark Mcleod

As always, consumer sentiment continues to be heavily influenced by the combination of local area market conditions and the overall macroeconomic environment. The buzz sparked by the Reserve Bank’s (RBA) early October decision to cut the official cash rate by 0.25% continued throughout last week, although the likely effect on the economy remained unclear.

In an unpopular move, ANZ finally joined the other major lenders late on Friday by announcing it would not pass on the full cut to consumers. A news.com.au article reported that the lender’s reduction of 20 basis points takes the ANZ variable rate to 6.6%, level with Commonwealth Bank. While acknowledging global funding costs have actually dropped, ANZ chief Philip Chronican blamed intense competition for deposits for the increase in overall costs.  

According to the Sydney Morning Herald, consumer confidence has risen for the second month in a row, based on the latest Consumer Sentiment Index produced by Westpac and the Melbourne Institute. The number of optimists now almost equals pessimists with many households feeling more secure in their finances, while remaining cautious about the long-term economic outlook. Despite the increase, Westpac’s Bill Evans told Property Observer the result was disappointing. Meanwhile, the International Monetary Fund (IMF) have downgraded its 2013 Australian economic forecast, warning of sluggish economic growth globally throughout this year and next.

The Herald Sun reported domestic unemployment is now at its highest level in more than two and a half years after the release of the latest data last week showed the jobless rate jumped to 5.4% in September. Mining giant BHP has announced it plans to slash jobs due to weakening conditions in China and falling commodity prices. In response, most economists are now predicting another interest rate cut on Melbourne cup day, although consumers are now sceptical of the banks passing the savings on.

Weekend Update - 13th & 14th October

Hope you had a relaxing weekend and managed to get some jobs completed. If you were out looking at homes, you would of seen a good number of open homes and buyers out looking. With the weather warming up, there are new buyers out looking to upgrade, downsize or make a lifestyle change before the new year. Interest was up for all properties but in particular, new properties to the market are getting the best response. If you are looking at selling, the first 4-6 weeks remain the most promising period to get the result you want.



A number of our new properties have sold recently just after the first or second home open. This is showing us that urgency has increased with less supply of homes and more competition from buyers. There is still talk of an interest rate decrease in the future and a recovery with iron ore prices.

With the warm weather, increased activity from buyers and less homes for sale, its a good time to consider making a move.

Have any Real Estate questions I can help with? I'd love to help. Contact me at robin.ram@raywhite.com