Here’s 3 minutes of property good news..then you can get on and enjoy your weekend…
2013 has started on a solid housing footing. Pun intended.
House prices have lifted for two consecutive months & now new home sales are also improving – albeit from a low base.
The housing market is gaining traction & a housing recovery is needed to revive economic activity given its extensive multiplier. The recovery is also looking quite broad-based, with activity (and values) rising across most capitals & in many regional areas as well.
In addition, there are important signs beyond the official interest rate cuts that are positive for the housing market.
Close to $13b worth of residential mortgage backed securities were raised last year, which whilst down on the pre-GFC $50b amount, shows the housing liquidity tap has been turned on.
The cost of wholesale funding has also eased. Banks have retained 45 of the 175 points cut so far from official interest rates.
However competitive pressure could see the banks pass on much of the retained 45 points even as the RBA stays put.
Consumer confidence (as measured by Westpac/Melbourne Institute) rose 8% in February to the highest level in over two years.
And for all those bears out there, according to the CBA, 81% of all mortgages are, on average, seven months in advance of contractual arrangements.
Hmmm, me thinks a housing recovery is on its way.
1. Life in housing sector
It’s small steps, but there’s life stirring in the housing sector, with the aid of low interest rates and a pick up in residential construction.
For the second straight quarter, residential construction work rose 1.7% in the Dec quarter – and all construction activity was up 11.9% on the previous year.
What’s significant is the multiplier effect that new housing construction has across the nation, such that the outlook for builders and trades servicing the building sector, is much better than six months ago.
2. Price boost
Good stuff from SQM Research this week – the beginning of the year is showing an uplift in vendor asking prices – signifying greater confidence in market conditions on the part of sellers and positive response from buyers to well-priced properties.
Capital city asking prices have risen by 0.4% for units and 1.5% for houses over the past ninety days, with some cities recording rises in excess of 3%.
Perth, Darwin, Sydney and Adelaide all recorded increased asking prices; while Brisbane and Melbourne have remained steady.
3. Mighty Kuke
Now here’s some seriously good news that was passed on to me by a friend, and while some may have read this, as it’s doing the rounds on the Net, the gentleman farmer in me badly wants to share it with those who haven’t.
Daily vitamins – one cucumber has just about all of them – B 1, 2, 3, 5, & 6, Folic Acid, Vitamin C, Calcium, Iron, Magnesium, Phosphorus, Potassium and Zinc. Who knew?
Energy booster – ditch the afternoon soft drink – the carbs and vitamin B in a kuke will give you a boost that lasts for hours.
Fog on your bathroom mirror? – rub a kuke slice along it.
Cellulite/wrinkles? – as above (and for vegie malfunctions, remember, I’m only the messenger).
Grubs – sliced cucumber in a metal pan gives off a chemical odour that repels some grubs & bugs – sit it in your garden.
Hangover or headache? – eat a few slices before bed.
Dull shoes? – you know what to do now, right? A freshly cut cucumber rubbed over shoes will provide a quick and durable shine, and repel water as well! And in Queensland right now it looks like we’ll need all the cucumbers we can get.
Out of WD 40? – squeaky hinge? Rub it on!
Stressed, no time for the spa? – cut up an entire cucumber, place in boiling water to release stress-relieving chemicals and nutrients in the steam.
Bad breath? – rub it on..ooops!…press a slice to the roof of your mouth; the phytochemicals in cucumbers will kill the bacteria in your mouth responsible for bad breath.
Faucets and sink grunge? – rub a slice of cucumber along your faucets and sinks to remove years of tarnish and bring back the shine!
Go on laugh….but I bet you’ll try at least one of these – I did.
Michael is the director of independent property advisory Matusik Property Insights and writes the Matusik Missive which is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.