Refinancing hits record $19.5B & Property listings rise 4.6%

I hope you and your family had a great Christmas break. Even though it's early in the year, there's already some big news to digest:

• Topic 1: Refinancing hits new record
• Topic 2: Property listings rise 4.6%

But this is just sample of what we have talked about this month!

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Additional articles covered in our newsletter this month are:

• 3 key fixed-rate loan tips
• Banks promise better service
• Plus our survey for this month and
• Our updates to Regional Property Market Reports

#1 Our survey results are in!

Conveyancer Vs Property Lawyer?

Our question was: As a property purchaser, would you use:

• A conveyancer
• A property lawyer
• Someone who does both

Some observations:

Personally, I like to use a conveyancer who works closely with a property lawyer or alternatively, a property lawyer. The reason being that if something goes awry, I want my conveyancer to be onto it like a dog with a bone. I don't want to have to suggest and then engage a property lawyer at the last minute (I had a client who was once in that position and it was painful for all concerned ??)

Property lawyers can cost a little bit more than a conveyancer (but not always a lot more) and for run-of-the-mill property transactions, you might think "Is this overkill?' But for me, I come from the perspective 'I am not the expert and I don't know what I don't know' so I rely on the legal and property experts to assist me. I would call those extra few hundred dollars I might need to spend as my insurance policy!

And if there is complexity but I don't understand the complexity, I don't want my conveyancer to assume I have already obtained appropriate legal advice (noting that conveyancers cannot give legal advice).

#2 Updates to our Property Market Reports.

These Reports are a great resource for those looking to buy in a new region or just to get a feel for what is happening in that region. Each Report also includes a suggested recommendation to Buy / Hold / Sell.

Updated Regional Property Reports

Here are the last 3 months' updates of these detailed regional reports (including the property clock: Buy / Hold / Sell).

There are 30+ regions analysed and they are updated regularly.

Mortgagees refinanced a record $19.5 billion of home loans in November, the Australian Bureau of Statistics (ABS) has reported.

That included $13.4 billion of owner-occupied loans (also a record) and $6.1 billion of investment loans (the second-highest on record).

The ABS had a simple explanation for the astonishing amount of refinancing that occurred in November: "More borrowers switched lenders for lower interest rates as the RBA’s cash rate target continued to rise."

There are two reasons why so many people are able to find lower-rate home loans at other lenders.

First, rising interest rates are causing people to shop around, because not all lenders are increasing rates at the same pace.

Second, with so many lenders in the market, competition for business is fierce, so institutions often charge new customers lower rates than their existing customers.

If you like the sound of switching to a home loan with a lower interest rate, get in touch. I’ll compare the market on your behalf and give you multiple options to choose from.

In a strange twist, the number of properties listed for sale has increased, even as the number of homes coming onto the market has decreased, according to SQM Research.

At first glance, it appears as though there must be fewer for-sale properties. That’s because, across Australia, the number of new listings (those that had been on the market for less than 30 days) in December was 22.4% less than the year before.

However, while fewer new homes are being listed for sale, those already on the market are taking longer to sell. In December, the number of listings that had been on the market for more than 180 days was 14.3% higher than the year before.

As a result, the total number of homes listed for sale in December was 4.6% higher than the year before.

SQM Research managing director Louis Christopher said the rise in older listings appears to be uniform across cities and towns, and is typical of what happens in a housing downturn.

"As there remains more sellers than buyers, dwellings on the market that are not priced to market, don’t sell," he said.

And one last thing..

"Don't wait for success to become stronger and confident. Be strong and confident. Success will automatically chase you." ―Saif Rehman