February Market Update - Bartlett & Co Property

February Market Update

February’s interest rate cut reversed the fortunes of the median house prices with a small uptick last month. The latest figures from CoreLogic showed a 0.3% gain across Australia. But CoreLogic’s research director Tim Lawless says that the growth probably has more to do with sentiment than any material changes in the market.

“The rate-cutting cycle is very fresh and is likely to be drawn out… Interest rate settings are likely to remain in restrictive territory for some time yet,” said Lawless. “Until home loan serviceability improves more substantially, it’s hard to see housing markets moving into a material growth trend.”

PropTrack’s data put the Australian median growth at 0.4% with the strongest bounce back in Melbourne.

Inflation down, but will interest rates follow?

The Reserve Bank filled pull the lever on a downward move in interest rates in February, a relief to overstretched mortgage holders. With the official cash rate now sitting at 4.10%, markets are pricing in another two before the end of the year.

Despite the drop, many mortgagees were in mortgage stress – defined as more than 30% of after tax pay on repayments. In Sydney, that figure is as high as 57% according to a Yahoo Finance survey. For mortgage holders with a little more wriggle room in their budget, keeping repayments at the current level can potentially slash the final interest bill.

New rule boosts ‘the missing middle’ in the Illawarra

A new NSW state planning law came into effect on the 28 February which allows an increase in low to medium density housing within 800 metres of 171 town centres and transport hubs across the state including in the Illawarra.

The law seeks to address the ‘missing middle’ in housing by making it easier to get approval for dual occupancy, townhouses and low-rise apartments. The new rules affect Corrimal, Fairy Meadow, Dapto, Warrawong, Warilla, Shellharbour, Albion Park and Kiama.

It is expected that the changes will boost affordability and provide new options for first home buyers and downsizers, boost land values in the new zones and fill in the missing middle.

Rate My Agent

With over 390 five-star reviews in over 46 locations across the Illawarra, Tim recently achieved another gong with the nationwide ratings agency, Rate My Agent. As well as sitting in the top 20% of agents nationwide and winning an award for trust, Tim was awarded the ‘Price Expert’ award for consistently picking the right price for your property.

A quick read of Tim’s Rate my Agent profile reveals a consistent pattern of sentiment: Trustworthy, professional, knowledgeable, expertise, experience, integrity and reliability. If you’ve got time to delve a little deeper another pattern emerges and that is the stress experienced by vendors who are selling their biggest financial asset and the way that Tim’s professional approach takes the stress out of the process.

“Downsizers especially have a very hard time selling the family home. There are all those memories and there are plenty of nerves about the process of selling and finding somewhere else to live,” Tim says. “As well as finding the right price, it’s important to help take the stress out of the sale.”