Rates

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Australia's capital city dwelling values were 9.8% higher over the financial year, according to the latest CoreLogic RP Data update. The previous 2013/14 financial year recorded a slightly higher rate of growth at 10.1%.  
Housing values rebounded in across the June quarter with dwelling values rising 2.0%t to be 9.8% higher over the year. 
The rate of capital gain was slightly higher over the second half of the year (5.1%) compared with the first half (4.5%) highlighting that the housing market has gathered some momentum during 2015, CoreLogic RP Data’s head of research, Tim Lawless, who believes the interest rates cuts in February and May have contributed in pushing capital gains higher. 
“Growth conditions had been moderating from April last year through to the end of January 2015.
"With the RBA cutting the cash rate in February, there was an instant buyer reaction across the Sydney and Melbourne housing markets where auction clearance rates surged back to levels not seen since 2009.
"Capital gains once again accelerated and we are now seeing Sydney and Melbourne homes selling in record time; Sydney homes are selling in just 26 days and Melbourne homes are selling in 32 days.” 
But while Sydney and Melbourne have seen dwelling values increase by 16.2% and 10.2% over the financial year respectively, every other capital city has seen growth of less than 5 per cent and dwelling values are down over the year in Darwin (-2.9%) and Perth (-0.9%). 
<a href="/images/2015/07/01/Screen%20Shot%202015-07-01%20at%209.58.14%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/01/Screen%20Shot%202015-07-01%20at%209.58.14%20AM.png" alt="">
Since dwelling values started rising in May 2012, Sydney dwellings have seen a 43.1% surge in values and Melbourne values are up by 25.9%. 
Despite emerging softer market conditions in Perth, dwelling values are currently up 12.8% over the cycle which represents the third highest growth rate across the capitals. 
"Simultaneously, Brisbane’s property market has shown the fourth highest rate of growth at 12.4%, followed by Adelaide (10.4%), Hobart (9.6%), Darwin (8.9%) and Canberra (8.8%). 
“The three tiers of housing market performance can be best explained by economic and demographic factors where it’s no coincidence that New South Wales and Victoria are recording the strongest economic conditions coupled with the strongest rates of migration which is fuelling housing demand. 
"Looking forward to the next financial year, Mr Lawless said it is difficult to imagine Sydney maintaining such a rapid pace of capital gains.
“Not only is affordability becoming a challenge for many sectors of the market, but yields are substantially compressed, rents are hardly moving and investors are facing tighter financing conditions from lenders.
“In the absence of a trigger event, such as a sharp rise in the jobless rate, higher interest rates or an external shock, it is unlikely we will experience a significant correction in dwelling values.
"However, the longer this run of growth continues across our largest capital cities, the more susceptible the housing market becomes to changes in the economy or broadly across household finance,” Tim Lawless said.<a href="/images/2015/07/01/Screen%20Shot%202015-07-01%20at%209.58.14%20AM.png" target="_blank" style="line-height: 1.3em;"> </a>
 
{mijopolls 118}
 
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Price growth second-wind spurt the RBA's doing: CoreLogic RP Data's Tim Lawless

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Returns on commercial property in Melbourne and Sydney exceeded those in Brisbane, Perth, Adelaide and Canberra, according to the Property Council/IPD Australia All Property Index for the year to March 31.
The average total return was 10.7% – 6.9% in income and 3.5% in capital growth, the Australian Financial Review noted.
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It was up from 10.4% in the year to December 2014, with an improvement in capital return due to ongoing compression in cap rates.
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Industrial real estate had the best annual return, up to 12.4% with NSW having the highest 13.9% return with Queensland next with 11.7%. 
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<div class="cq-article-content-media section">Retail property showed the next best return, up 10.9%. </div>
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Office property returns were up 10.2%. 
The Property Council/IPD Australia All Property Index was prepared by MSCI based on the performance of more than 1200 properties with a combined value of $137 billion.
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Industrial has best annual return with NSW strongest: PCA/IPD Australia

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Auswide Bank has announced a 3.99% per annum variable home loan interest rate. 
Auswide Bank managing director Martin Barrett says this rate was available for purchase, construction and refinance purposes on new principal and interest home loans of $150,000 for LVR’s up to 90%.   “It includes a 100% offset account and the ability to fix when you want to,” said Barrett. 
Martin Barrett says this rate is the lowest advertised home loan rate offered<a href="https://www.auswidebank.com.au/uploads/pdfs/lib/loan_interest_rates_home_loans_and_lines_of_credit_with_freedom_package_special_offer.pdf?1506B" target="_blank"> in the bank’s history</a>.
Last month Auswide Bank was awarded a five-star rating from Canstar on its Freedom Package home loan products. The non-major received the outstanding value accolade for both its residential and investment variable home loans with the Freedom Package. The Home Loan Star Ratings Report looks at over 100 lenders and over 1,000 loan products to determine which providers and products offer outstanding value for borrowers.
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Auswide Bank offers 3.99% variable rate

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St.George Bank Group has introduced a new competitive rate of 4.19% p.a. for its Basic Home Loan across St George , Bank of Melbourne and Bank SA. The promotional rate, effective from 1 July 2015, is available to new owner occupier Basic Home Loan applications and for existing customers switching into a new fixed rate.
Mozo reported no rate changes by the major banks in the home loan arena, but there were some more variable RBA rate cuts over June, as a result of the RBA cutting the official cash rate to 2% in May.
"The lowest variable rate of 3.94% is available from <a href="https://www.propertyobserver.com.au/https://mozo.com.au/home-loans/information/homestar/Basic-Refinance-Loan-Principal-&amp;-Interest,-Owner-Occupier/5514" target="_blank">Homestar</a> (owner occupier refinancing with LVR up to 70%) and Mortgage House (owner occupier with LVR up to 50%). 3.98% is the next best, available from both Homestar (up to 95% LVR) and Freedomlend (up to 80% LVR)," Mozo advised this week.
"Over June we started to see longer term fixed rates creep up, with 10 lenders increasing rates for terms of three years or longer. 
"We expect this trend will continue, however many long term rates haven’t moved yet and there’s plenty of competition for 1 and 2 year rates," <a href="https://mozo.com.au/blog/2015/07/mozo-rate-chasers-roundup-june-2015/" target="_blank">the Mozo rate chasers blog noted</a>.
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