Mortgage Broker Melbourne September Update
As the weather heats up, so do auction clearance rates
Every spring, Melbourne’s auction clearance rates and new listings increase and impress. September 2015 was no different. Although Melbourne saw its fourth lowest weekly clearance rate for the year, compared to the rest of the country (Sydney excluded) it remained high.
The most remarkable comparison to this same time last year is the number of listed properties in Melbourne. During the last week of September 2014, there were only 112 Melbourne auctions held. Compare that to the last week of September 2015, where we saw 1,197 auctions held (1,050 sold). Accompany these statistics and consider that the fourth lowest weekly clearance rate of the year is 73.3 per cent in Melbourne; this indicates it is still a great time to buy or sell.
Nation’s population growth slows, but Victoria staying static
Our nation has seen its population growth slump to its lowest in 9 years. At a national level, we have two components of population growth, natural increase (births minus deaths) and net overseas migration.
Victoria saw a decline in natural growth, as did NSW, but remains a major benefactor of net overseas migration seeing almost a third (31.6%) of overseas migration flowing to our nation’s sporting capital. Victoria also remained a strong benefactor in interstate migration.
Victoria’s growth has only slowed by 1.01% in the past two years. When the state also sees a third of the overseas migration, it makes it very clear why home value and demand for housing has been so strong.
Look out for increasing interest rates on credit cards
We all know credit cards are a money trap, but never as we know it today. 57.5% of the population has credit card debt, and of that, 35% have more than $5,000 debt. Most credit cards have an interest rate of 14% or higher, and for those who only make the minimum repayments it’s important to realise that it may take you in excess of 10 years to pay off your debt.
14.1% of individuals had five or more credit card enquiries, and an alarming 20.3% of 25-34 year olds had 5 or more credit card enquiries.
With increasing interest rates on credit cards, we see more and more people refinancing their mortgages. Why? You can consolidate your debt through a simple mortgage refinance, and combine all of your debt repayments into one simple monthly payment.
If this sounds like you, or you’d like more information on refinancing your mortgage, get in touch with Mortgage Broker Melbourne and see what we can do to help.