What constitutes a slowing market?
There has been abundant speculation from many so called “experts” that property values are set to fall and let’s face it, nothing has a greater impact on a market than a lack of confidence, but a slowing market is not necessarily one that is falling in value, as is the case (with possibly some exception in unit values) in the local market over the longer term. In fact Adelaide overall has proven it has weathered the storm by currently recording a moderate increase in median property values.
The greatest impact that the change within the market place is having is more to do with how long a property has taken to sell, rather than the actual value, and although it has been the case that some owners have had to review their asking price downward recently to effect a sale, the actual comparative values have not changed considerably.
What is having more of an impact on the local market is the availability of funds from lenders, where they have made it more difficult for purchasers by tightening the rules (and probably not before time) thereby reducing the numbers of purchasers able to purchase. Rising fuel prices, a share market decline and rising consumer expenses are also more a factor locally and nationally.
The positive factors for the local market far outweigh the problems associated with other markets. We still have the most “affordable” property on mainland Australia; the local economy is somewhat stronger than before, we have low rental vacancies and a rising population. Overall the future, albeit a little less frenzied than the last few years does look positive.
Who decides what will happen with property values anyway? Surely it’s the purchasers and we still have many ready to buy now.
Need further information on the local market? Contact me for a confidential chat.
Tuesday, 2 September 2008
Wednesday, 2 April 2008
Australian Homes Will Remain Unaffordale - Get Used To It
Now here is something that may not come a surprise to homebuyers
According to a housing report from the Reserve Bank , Australians should resign themselves to the fact that housing will never be affordable.
Its grim reading for struggling homeowners and those looking at buying their first home.
The report said “it is no doubt the case that housing will never be as ‘affordable’ as we might like, and the cost of housing has been the subject of concern for at least several decades”. The RBA yesterday opted to keep the official cash rate unchanged, at 7.25 per cent it is still at a 12-year high. Official inflation figures due out later this month are expected to hit close to 4 per cent – outside the RBA’s 2-3 per cent target range, extending further pressure on the central bank to raise rates further.
The Haves and Have Nots
Increased housing prices are creating a greater gap for those who are, and those who want to be homeowners and the RBA considers this be be a "a mixed blessing" for Australians.
"At one level, rising housing prices have made many people feel wealthier and have contributed to higher levels of consumer spending than might otherwise have occurred. But they have also resulted in concerns about housing affordability."
The RBA said standard accessibility measures are driven by housing prices, household incomes and mortgage interest rates.
Tenants are not excempt
If you’re renting. Renters will also be worse off when housing prices rise, according to the RBA.
“Younger people who have not yet bought homes will be hurt by higher housing prices, Renters will be worse off when housing prices rise, whereas those who own rental property will be better off," the report said.
Along with property values, rents are also at record highs and vacancy rates are well below 2 per cent across the country, and virtually zero in Sydney.
Governments can do more
The RBA said governments had an important role to play in making housing more affordable.
“In particular, policy initiatives to address any structural factors that encourage excessive demand for housing … will reduce ‘average’ house prices over future cycles and could provide enduring affordability benefits to both home buyers and renters.”
“It is now widely accepted that policies that simply give people more money to spend on housing are likely to be capitalised into higher housing prices.” The RBA said to improve housing affordability, governments should be focused on policies on land use and improving efficiency in the supply of land and housing.
According to a housing report from the Reserve Bank , Australians should resign themselves to the fact that housing will never be affordable.
Its grim reading for struggling homeowners and those looking at buying their first home.
The report said “it is no doubt the case that housing will never be as ‘affordable’ as we might like, and the cost of housing has been the subject of concern for at least several decades”. The RBA yesterday opted to keep the official cash rate unchanged, at 7.25 per cent it is still at a 12-year high. Official inflation figures due out later this month are expected to hit close to 4 per cent – outside the RBA’s 2-3 per cent target range, extending further pressure on the central bank to raise rates further.
The Haves and Have Nots
Increased housing prices are creating a greater gap for those who are, and those who want to be homeowners and the RBA considers this be be a "a mixed blessing" for Australians.
"At one level, rising housing prices have made many people feel wealthier and have contributed to higher levels of consumer spending than might otherwise have occurred. But they have also resulted in concerns about housing affordability."
The RBA said standard accessibility measures are driven by housing prices, household incomes and mortgage interest rates.
Tenants are not excempt
If you’re renting. Renters will also be worse off when housing prices rise, according to the RBA.
“Younger people who have not yet bought homes will be hurt by higher housing prices, Renters will be worse off when housing prices rise, whereas those who own rental property will be better off," the report said.
Along with property values, rents are also at record highs and vacancy rates are well below 2 per cent across the country, and virtually zero in Sydney.
Governments can do more
The RBA said governments had an important role to play in making housing more affordable.
“In particular, policy initiatives to address any structural factors that encourage excessive demand for housing … will reduce ‘average’ house prices over future cycles and could provide enduring affordability benefits to both home buyers and renters.”
“It is now widely accepted that policies that simply give people more money to spend on housing are likely to be capitalised into higher housing prices.” The RBA said to improve housing affordability, governments should be focused on policies on land use and improving efficiency in the supply of land and housing.
Tuesday, 1 April 2008
Great Australian dream becoming a joke
House prices jump 400%, income rises 120%
NSW least affordable state
Northern Territory relatively cheap
AUSTRALIA has one of the least affordable housing markets in the English-speaking world and it is not just hurting young people wanting to buy their first home, new research shows.
The AMP-NATSEM (The National Centre for Social and Economic Modelling) report - released today - reveals the dream of home ownership is fading for many people. House prices have jumped 400 per cent between 1986 and 2007 while income has risen just 120 per cent. The report - Wherever I lay my debt, that's my home - compares the 1995-1996 housing situation to the latest available data from 2005-2006.
Read full article here
Great Australian dream becoming a joke AdelaideNow
NSW least affordable state
Northern Territory relatively cheap
AUSTRALIA has one of the least affordable housing markets in the English-speaking world and it is not just hurting young people wanting to buy their first home, new research shows.
The AMP-NATSEM (The National Centre for Social and Economic Modelling) report - released today - reveals the dream of home ownership is fading for many people. House prices have jumped 400 per cent between 1986 and 2007 while income has risen just 120 per cent. The report - Wherever I lay my debt, that's my home - compares the 1995-1996 housing situation to the latest available data from 2005-2006.
Read full article here
Great Australian dream becoming a joke AdelaideNow
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