Property Investors Beware: prepare now for looming rate hikes

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Borrowers are being warned by one of Australia’s comparison websites finder.com.au/home-loans, to start preparing for higher costs, following possible interest rate hikes by the end of the year.

Their latest monthly survey of Australia’s leading economists and banking experts unanimously predict the Reserve Bank will keep the official cash rate on hold at its board meeting on Tuesday (April 1, 2014), with almost half – five out of 11 experts surveyed – expect the cash rate to rise during the fourth quarter of 2014.

The five experts from Commonwealth Bank, Commsec, HSBC, ING Direct and St George Bank told finder.com.au that the Reserve Bank is tipped to increase the cash rate on Melbourne Cup Day at its November board meeting or by the end of the year. [Read more...]

The Housing Construction Recovery Will Spread It’s Wings in 2014

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The Housing Industry Association predicts a gradual broad based recovery in residetnial constrauctions over the next few years in its recently released National Outlook.

HIA Senior Economist, Shane Garrett said: [Read more...]

Now that unemployment rate hits 6% – what next? Pete Wargent

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Another weak labour force report sees Australia’s unemployment rate up to 6%, a fact which breathed some life and excitement into the bearish circles.

I’ll never understand how people can see job losses as something to get excited about.

I just can’t help that, I’m a natural born optimist who prefers to try to see the best in people and look for positivity in situations whenever and wherever I can.

I don’t pay much heed to monthly employment data. The samples are too small and the non-response rates too high for it to carry too much meaning.

However, looking at the number of employed persons since January 2013 shows a disappointingly flat line. [Read more...]

End of Week Property Market Wrap Up -RPData

investment property 2

The Reserve Bank released the minutes of their February board meeting earlier this week. The key theme of the minutes is that the RBA is likely to maintain their neutral policy setting over the short term at least which implies a stable cash rate.

The RBA sums it up with this quote from the Minutes: “the most prudent course would likely be a period of stability in interest rates”. One of the Bank’s most challenging considerations is the higher than expected inflation reading for the December quarter and the reasons behind that high reading.

[Read more...]

Dr Frank Gelber Shares His Outlook For House Prices With Peter Switzer [video]

Real Estate

Dr Frank Gelber from BIS Shrapnel joins Switzer TV and gives his views on the economy, interest rates and the outlook for house prices.

As always, Frank is an entertaining economist and it’s worth watching this video for his insights.

[Read more...]

What do the Wobbles on Wall Street mean for Residential Real Estate? Louis Christopher

investing in property

The year has started with some caution after early wobbles on Wall Street.

The Dow Jones Industrials Index has now fallen 4.5% for the month of January and 6.5% for year to date.

That is the worst result for a new year since 1982.

There is a hypothesis going around that stock market performance in January (particularly in the U.S.) predicts its performance for the rest of the year.

So if the stock market rises in January, it is likely to continue to rise by the end of December.

And of course, vice versa – if the market has a bad month in January, it can set the scene for a particularly bad year. [Read more...]

[video] Westpac Economic Update: Bill Evans. It’s not all good news for property!

property house prices

Westpac Chief Economist Bill Evans comments on labour market data in the US and Australia, the Westpac Consumer Sentiment Survey, housing approvals, as well sharing his insights in the movement of the Australian currency and interest rates.

If you’re interested in property investment these macroeconomic factors will be important for you to understand the factors likely to influence our economy, employment levels, consumer sentiment  and our confidence in buying real estate.

As you will see – it’s not all good news

[Read more...]

10 reasons to feel positive about property in 2014

happy property investors

At the beginning of a New Year it’s customary for property commentators to give forecasts for what’s ahead.

Today I’m going to share 10 reasons why I’m feeling positive about 2014, but first let me give you my obligatory forecast, which is…

Most forecasters will be wrong this year.

Why do I say this? [Read more...]

Money – is it a positive or a negative?- Louise Bedford

consumer confidence good for property investment

How does money influence you?

When does money go from being a positive, to a negative force in our lives?

[Read more...]

What happened in property this week – Tim Lawless

business man hand exchange dollar sign and house icon

The Australian Bureau of Statistics (ABS) released housing finance data for November 2013 earlier this week.

The data showed that total owner occupier housing finance commitments increased by 1.1% over the month with 52,912 commitments, the highest number of commitments since October 2009.

Owner occupier commitments consist of refinances and non-refinance commitments and they increased by 1.7% and 0.9% over the month respectively.

How to grow a multi million dollar property portfolio
Year-on-year, refinance commitments are 13.7% higher and non-refinance commitments are 16.1% higher.

The total value of housing finance commitments increased by 1.5% in November with owner occupier refinance commitments increasing by 2.8%, owner occupier non-refinance commitments up 1.5% and investment commitments also increasing by 1.5%.

Year-on-year, owner occupier refinance commitments are 20.7% higher, owner occupier non-refinance commitments are 18.5% and investment commitments are 35.2% higher. Investment finance commitments are now at a record high level and account for 38.5% of the value of all housing finance commitments, which is around the highest proportion since early 2004.

Housing finance data also showed that the proportion of owner occupier purchases by first home buyers reached a record low in November 2013.

As a proportion of all first home buyer finance commitments, first home buyers accounted for just 12.3%, down from 12.6% in October. The number of first home buyer commitments fell by -1.2% over the month and are -13.2% lower year-on-year.

Weekly Advertised Listings

Over the four weeks to 12 January, there were 21,444 newly advertised properties listed for sale nationally.

The number of new property listings fell by -11.6% over the week and new listings are currently -23.0% lower than at the same time last year.

Across the combined capital cities, new listings were -9.6% lower over the week and they were -26.1% lower than they were a year ago.

There are currently 232,068 properties listed for sale across the country, the lowest number of listed properties since March 2011.

Total listings at a national level were -1.8% lower over the week and -3.5% lower than they were at the same time last year. Across the combined capital cities, total listings have fallen by -3.9% over the week and they are -12.2% lower than they were at this time a year ago. Capital city listings account for just 38% of all listings nationally.

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