Spring has arrived and with it comes the much-celebrated spring property market!
The Canberra market is off to a great start. Median property prices grew over the winter quarter, activity was relatively strong and interest rates remain at an all-time low.
So exactly where has the traditionally quiet winter market left us?
A good time for consumers
For the 13th consecutive month, the RBA has left the official cash rate unchanged at 2.5%. This is the longest period of stable rates since 2006.
Whilst the initial cuts saw activity boosted in the final quarter of 2013, this pace was lost in early 2014. As the budget delivery approached, buyer and seller activity started to slow as consumers played it safe.
Consumer confidence has recorded a significant rise in August (+3.8% according to the Westpac Melbourne Institute Survey of Consumer Sentiment) meaning almost all of the 6.8% fall following the budget announcement has now been recovered.
With no foreseeable rise in the official cash rate on the horizon, it’s a good time for consumers.
Property prices and volume grow over winter
Property prices grew over the winter months to sit at a median of $395,000 for townhouses and apartments (+0.7% annually), and $545,000 for houses (+3.8% annually).
Median house prices have continued to increase month by month, up 0.4% over August.
The number of new house sale listings in August was 43 more than the same time last year, representing a +10.1% increase. There were a total of 408 house sale transactions recorded during August, making a total of $236.66 million.
Seller activity over the winter quarter has improved +2.7% since this time last year, which is a solid way to start the active months of spring.
Rental prices on the decline again
After briefly stabilising for three months, rental prices have recommenced their slow decline.
The median weekly rent for the ACT and Queanbeyan region now sits at $395.
Large houses of 4 or more bedrooms have been the most consistent performers in the rental market this year with prices dropping just $10 per week since this time last year.
The average days a property spends on the market is also growing steadily. In August rental properties spent an average of 44.7 days on Allhomes.com.au, up +0.6% monthly and +14.5% yearly.
Other key information