Market Update: September & October 2023 – RBA continues to pause, as fixed rates reduce and property prices continue to climb.

We are happy with the RBA’s decision to again keep the cash rate paused at 4.10%
Relieving news in this edition of the Market Update. We are happy with the RBA’s decision to again keep the cash rate paused at 4.10%. The media was pretty negative leading into the RBA’s call, with inflation data trending slightly upward…mainly due to rising rents, fuel, and insurance premiums. Internally, we believe these 3 key issues have no way of being positively impacted by way of increased interest rates.

We’ve seen a number of lenders begin to reduce their 2 and 3 year fixed rates as a result of cash rate stability. You will find these rates now start in the high 5% to low 6% range, which is much closer to where variable interest rates are currently pegged. If you’re more on the pessimistic side, you might think this indicates that rates are due to come back down within that period and lenders are trying to capitalise on the margins now…

Adelaide’s property prices have hit 7% growth so far this year, with September’s results displaying an uptick of 0.48%. The median price is now up to $689,000! Regionally, South Australia is on track for 10% growth over the past year. Supply levels are still not meeting increasing demand, especially with migration opening back up. It’s a perfect climate for sellers, but very stiff out there for prospective buyers. The sun has prepped up again, and spring-time is always a happy season for the market.

As a Mortgage Broker we are often pigeon-holed to residential finance, helping your purchases and refinances at the right price. We have many ways we can help you and your family though, by way of specialty lenders in SMSF, commercial property, reverse mortgages, asset finance and vehicle loans. If you have a purchase in mind or a debt in question, simply let us know and we’ll see where we can help you into the right product for you.

Market Update