It’s been a remarkable 12 months. 2019 kicked off with expectations of rising interest rates. Some lenders even announced rate hikes of their own in January.

But the Reserve Bank took the market by surprise, with a string of rate cuts from June that have seen the official cash rate fall to the lowest level on record.

More good news followed in mid-2019, when bank regulator APRA relaxed lending standards, making it easier for Aussies to secure a home loan. Better yet, after months of little activity, mid-2019 saw the property market turn a corner.

Home values nationally have risen each month since June, with gains of 2.9% over the last quarter alone. In cities like Melbourne and Sydney, auction clearance rates are almost double the levels of a year ago, and home values are now just 5.7% below their previous market peak.

Where to from here?

In terms of interest rates, the Reserve Bank has said we can expect an extended period of low interest rates, and further rate cuts could still be on the cards in 2020.

The New Year also looks promising for the property market, where research is predicting home values to keep rising in 2020 with Sydney and Melbourne leading the charge.

Melbourne values are forecast to rise between 11% to 15% and Sydney between 10% to 14%. Other cities are also expected to see values climb with gains of up to 6% for both Brisbane and Perth, and 7% for Canberra. Hobart prices are forecast to rise by as much as 8% and Adelaide could see a 4% rise in property values.

With property values currently a little bit more affordable, 2020 is shaping up as a bumper year for investors and those looking to upgrade in the New Year. And as home loan rates are at their lowest in 70 years, now is the time to check that you have the loan that’s right for your needs.

Go straight to Aussie to see how you can make the most of everything the New Year offers.