Wednesday, September 20, 2017

Perth is back to 2012 house prices

Perth house prices have dropped 8.5% in two years and the median house price is back to what it was in September 2012. In those five years, Sydney house prices shot up 75% and Melbourne went up 51%. So is now a time to buy? 

Monday, September 11, 2017

LIar Loans are a $500b problem in Australia

UBS has today expressed concern that up to a third of Australian mortgages could have been granted based on falsified information. They surveyed 900 borrowers last year and found only 67% of responders said that their mortgage was completely factual and accurate. 37% of those getting a loan via a broker said that it was the broker's suggestion to falsify parts of their application. Where people have set up previous loans, 46% found it easier to get their most recent loan compared to previously.

Tuesday, September 5, 2017

Corelogic shows 0/9% drop in Perth House prices in August

Now is the time to buy. That's what you will hear as the conclusion of the most recent announcement that Perth prices have dropped yet again in August. For a real estate agent, NOW is ALWAYS the time to buy. House prices have dropped 0.9% according to CoreLogic and 0.6% for units. Perth has slipped 2.6% in 2017 with Perth joining Sydney (0.1% drop) and Darwin (3% drop) while Melbourne soared 7.6% in the same period. 

RBA - rates on hold

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.
Conditions in the global economy are continuing to improve. Labour markets have tightened further and above-trend growth is expected in a number of advanced economies, although uncertainties remain. Growth in the Chinese economy is being supported by increased spending on infrastructure and property construction, with the high level of debt continuing to present a medium-term risk. Commodity prices have risen recently, although Australia's terms of trade are still expected to decline over coming years.
Wage growth remains low in most countries, as does core inflation. Headline inflation rates have declined recently, largely reflecting the earlier decline in oil prices. In the United States, the Federal Reserve expects to increase interest rates further and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively and volatility remains low.
The recent data have been consistent with the Bank's expectation that growth in the Australian economy will gradually pick up over the coming year. The decline in mining investment will soon run its course. The outlook for non-mining investment has improved recently and reported business conditions are at a high level. Residential construction activity remains at a high level, but little further growth is expected. Retail sales have picked up recently, although slow growth in real wages and high levels of household debt are likely to constrain future growth in spending.
Employment growth has been stronger over recent months and has increased in all states. The various forward-looking indicators point to solid growth in employment over the period ahead. The unemployment rate is expected to decline a little over the next couple of years.
Wage growth remains low. This is likely to continue for a while yet, although stronger conditions in the labour market should see some lift in wages growth over time. Inflation also remains low and is expected to pick up gradually as the economy strengthens.
The Australian dollar has appreciated over recent months, partly reflecting a lower US dollar. The higher exchange rate is expected to contribute to the subdued price pressures in the economy. It is also weighing on the outlook for output and employment. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.
Conditions in the housing market continue to vary considerably around the country. Housing prices have been rising briskly in some markets, although there are signs that conditions are easing, especially in Sydney. In some other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases remain low in most cities. Investors in residential property are facing higher interest rates. There has also been some tightening of credit conditions following supervisory measures to address the risks associated with high and rising levels of household indebtedness. Growth in housing debt has been outpacing the slow growth in household incomes.
The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

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