More signs of a housing market recovery
More signs of a housing market recovery
Posted on Friday, February 01 2013 at 3:04 PM
Did you invest in property last year? You might’ve jumped in at just the right time, with new data released today showing home prices across Australia rose by 1.8 per cent across 2012.
In further signs
of a looming recovery, capital city dwelling values rose by 1.2 per cent in
January, largely thanks to gains in the Sydney, Perth and Brisbane markets.
RP Data reports that
every capital city recorded an increase in dwelling values over the past 12
months, with the exception of Melbourne, which was down 0.4 per cent.
The firm’s research
director Tim Lawless says the housing market has started the year on a strong
foot.
“These strong
January results are likely to have seen some upwards seasonal bias, however the
housing market has been on a clear recovery trend since June last year,”
Lawless says.
“The latest
housing market data adds weight to the argument that interest rates may be at
the bottom of the cycle. The Reserve Bank will be watching the performance of
the housing market closely and the positive trend in housing values will dampen
calls for further interest rate cuts.”
Additional data
is also pointing towards an improvement in the Australia housing market. The
average number of days it takes to sell a property was steadily decreasing
prior to the seasonal slowdown in December and January and the rate of vendor
discounting was also on a clear trend of improvement.
“The typical
capital city house took 50 days to sell in December last year, a vast
improvement from the recent high of 76 days recorded in February last year.”
Additionally,
vendors are now discounting their initial asking prices by an average of 6.6
per cent compared with 7.3 per cent a year ago.
“With stock
levels (still) high, it’s likely to remain a buyers’ market for some time,
however I think we’re now seeing some balance return to the negotiation table. Buyers
are losing some of their negotiation power and homes are selling faster.”
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
More signs of a housing market recovery
Strong 2012 finish for construction sector
House prices on the rise
Nature’s fury slows market recovery
Coober Pedy strikes black gold
Door open for February interest rate cut
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/e2bOanTjf3I/more-signs-of-a-housing-market-recovery
Strong 2012 finish for construction sector
Strong 2012 finish for construction sector
Posted on Thursday, January 31 2013 at 4:36 PM
An increase in new home sales in December signals a healthier outlook for the year ahead, according to Housing Industry Association (HIA).
The body’s New Home Sales Report released today
shows seasonally adjusted new dwelling sales grew by 6.2 per cent last month.
According to HIA economist Geordan Murray, the
result indicates strength across a number of property types.
“The promising headline rise last December was
driven by both detached houses and multi-unit sales,” Murray says.
The result for detached house sales was
particularly good news as this was one of the underperforming sectors across
last year, he says.
“The December improvement was broad-based as
sales increased in all but one of the surveyed states.”
While the month’s results were promising, there
were some sectors needing improvement.
“Detached house sales were weak throughout the
year compared to 2011, but on the other hand multi-unit sales were the star
performer of the year,” he says.
The group is hopeful of improved results in
2013 on the back of this lift.
“It’s hoped further signs of an impending new
home building recovery emerge in the coming months.”
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Strong 2012 finish for construction sector
House prices on the rise
Nature’s fury slows market recovery
Coober Pedy strikes black gold
Door open for February interest rate cut
Property a priority in 2013 as confidence lifts
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/pKwTjZQ3ZQs/strong-2012-finish-for-construction-sector
Strong 2012 finish for construction sector
Strong 2012 finish for construction sector
Posted on Thursday, January 31 2013 at 4:36 PM
An increase in new home sales in December signals a healthier outlook for the year ahead, according to Housing Industry Association (HIA).
The body’s New Home Sales Report released today
shows seasonally adjusted new dwelling sales grew by 6.2 per cent last month.
According to HIA economist Geordan Murray, the
result indicates strength across a number of property types.
“The promising headline rise last December was
driven by both detached houses and multi-unit sales,” Murray says.
The result for detached house sales was
particularly good news as this was one of the underperforming sectors across
last year, he says.
“The December improvement was broad-based as
sales increased in all but one of the surveyed states.”
While the month’s results were promising, there
were some sectors needing improvement.
“Detached house sales were weak throughout the
year compared to 2011, but on the other hand multi-unit sales were the star
performer of the year,” he says.
The group is hopeful of improved results in
2013 on the back of this lift.
“It’s hoped further signs of an impending new
home building recovery emerge in the coming months.”
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Strong 2012 finish for construction sector
House prices on the rise
Nature’s fury slows market recovery
Coober Pedy strikes black gold
Door open for February interest rate cut
Property a priority in 2013 as confidence lifts
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/pKwTjZQ3ZQs/strong-2012-finish-for-construction-sector
New home loan deals beating RBA rate cuts
New home loan deals beating RBA rate cuts
Posted on Monday, January 21 2013 at 3:19 PM
While banks are often criticised for not passing on official interest rate cuts in full, a few are actually offering deals that exceed reductions by the Reserve Bank of Australia, one broker says.
When the RBA last
lowered the cash rate in November by 0.25 per cent, banks cut their standard
variable rates by an average of 0.19 per cent.
However, Smartline
Personal Mortgage Advisers executive director Joe Sirianni says home loan
packages offered to new clients were cut by an average of 0.29 per
cent.
“In other words,
if you go to the trouble of making yourself a ‘new customer’, the banks will
fight for your business.
“This has come
about because the number of new home loans being written has significantly
decreased in recent years as Australians shy away from taking on debt.”
He says competition
has heated up and banks are trying to grow their market share from a relatively
small pool of business.
“As a result,
they’re prepared to ‘sharpen their pencil’ and offer an extremely competitive
rate to secure a new customer.
“If you want a
better home loan deal, it might be time to consider becoming a new bank
customer with another lender, or asking your existing lender for the type of
deal they’re offering new customers.”
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Coober Pedy strikes black gold
Door open for February interest rate cut
Property a priority in 2013 as confidence lifts
New home loan deals beating RBA rate cuts
Tight rental markets heat up
Investors pick up first homeowners’ slack
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/n0qhXHP2PWk/new-home-loan-deals-beating-rba-rate-cuts
Door open for February interest rate cut
Door open for February interest rate cut
Posted on Wednesday, January 23 2013 at 3:05 PM
The release of today’s underlying inflation figure leaves the door open for the Reserve Bank of Australia (RBA) to cut interest rates in February, according to a leading economist.
JP
Morgan chief economist Stephen Walters says the inflation rate or 2.4 per cent provides
“accumulating evidence that domestic demand remains soggy”.
“Annual
inflation tracking along the bottom half of the RBA’s two to three per cent
target band provides officials with the ‘excuse’ to push the cash rate deeper
into accommodative territory,” Walters says.
Matthew
Gross, director of advisory firm National Property Research, isn’t convinced
any further cuts will have an immediate impact on the property sector.
“I
think our greater leads will come from watching what happens in retail
spending,” Gross says. “I think we’ll see what happens with the new homes
construction data and I think the stockmarket is a much better indicator.”
He
believes the flow on effects of any rate reduction will take longer to filter down
to property.
“The interest rate fall will probably
have a bigger impact on people’s capacity to spend. That’ll help stimulate the
economy to create more confidence and then we will see that flow into the
housing market.”
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Coober Pedy strikes black gold
Door open for February interest rate cut
Property a priority in 2013 as confidence lifts
New home loan deals beating RBA rate cuts
Tight rental markets heat up
Investors pick up first homeowners’ slack
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/S8nHzjdGUts/door-open-for-february-interest-rate-cut
Coober Pedy strikes black gold
Coober Pedy strikes black gold
Posted on Thursday, January 24 2013 at 1:03 PM
The tiny South Australian mining town of Coober Pedy could be home to the country’s largest oil resource.
It’s well known
for its homes, which are mostly in the form of ‘dugouts’ and built under rock
due to the extreme temperatures, but it might soon be on the map for much more
significant reasons if Linc Energy has its way.
The mining company
has released reports stating the Archaringa Basin surrounding Cooper Pedy could
have between 3.5 billion to 233 billion barrels of untapped oil.
Adelaide Now reports Australia could potentially turn from an oil
importer to oil exporter while fueling the entire country.
While it’s
obviously early days, Lin Andrews Coober Pedy real estate agent Di Enders says
her phone has been ringing off the hook since the news broke this morning.
“I’ve had so many
calls, you wouldn’t believe it,” she says. “My brain is about to explode.”
Enders says the main reasons why people buy in Coober Pedy are tight vacancy
rates and high rental yields, but the area does have limited infrastructure.
Rents are going
up by about $10 per week at the moment.
“People renting
don’t want to surrender their houses, they know they won’t get another one,”
she says.
There are
currently no listings on realestate.com.au. Enders adds the vacancy is tight at
the moment but she doesn’t want Coober Pedy to turn into “another Roxby Downs” where
investors speculated about the expansion of Olympic Dam, which was then
delayed.
SA TAFE property
investment course coordinator Peter Koulizos says the news is “very exciting”
and potentially much bigger than the Olympic Dam project.
But he warns the
findings are still years away from eventuating into something much bigger.
“Most mining
projects have two phases. One is to get government approval, the second one is
to get finance.
“South
Australians are a little bit cautious now, we’re certainly not popping bottles
of champagne at the moment.”
Linc Energy
managing director and chief executive officer Peter Bond agrees it’s still
early days but believes the findings are positive.
“Linc Energy is
committed to delivering the best outcome for the development of this acreage
and maximising value to shareholders,” he says.
“The best way for
Linc Energy to do that is to bring in an industry expert with the know-how and
funding to drive this asset forward to production as promptly and as
efficiently as possible.”
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/hrrUL4AqD88/coober-pedy-strikes-black-gold
Property a priority in 2013 as confidence lifts
Property a priority in 2013 as confidence lifts
Posted on Tuesday, January 22 2013 at 11:13 AM
A comprehensive survey of homebuyer sentiment shows the majority of respondents are more confident about stepping on the property ladder in 2013.
The
probe by property listing site www.realestate.com.au confirms increasing
saving activity and paying down mortgage debt is a top priority for the almost
4500 respondents.
However
visitors to the website also reported feeling confident about the housing
market despite their money conscious outlooks, according to Arthur Charlaftis
from realestate.com.au.
“The
results of our survey shows that 62 per cent of 18 to 24-year-old respondents
plan to save for a deposit for their first home and enter
the market for the first time this year,” Charlaftis says.
In
addition, nearly one- third of respondents want to sell their home in 2013 and
upgrade to something bigger.
The
survey also indicates 75 per cent of people feel secure in their jobs,
Charlaftis.
“There’s
definitely a growing sense of confidence about the property market in the year
ahead.”
The
study was conducted in December 2012 and the results parallel a rise in the Roy Stanley Consumer
Confidence Rating of 3.1 per cent, which reflected a 12-month high
for the index.
While
participants in the realestate.com.au survey were looking to improve their
savings position, more than half still plan on taking holidays this year.
Similarly,
83 per cent have no plans to scale back their social lives in 2013.
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/VKrVPOeNbCg/property-a-priority-in-2013-as-confidence-lifts
Forget the bank – we want gadgets and holidays
Forget the bank – we want gadgets and holidays
Posted on Monday, December 03 2012 at 2:25 PM
A survey released today shows half of homeowners who’ve missed a mortgage payment did so to pay for whiz-bang gadgets for their home.
According to the study published by
HomeLoanFinder.com.au, another 40 per cent of repayment dodgers admitted to
using the cash to fund a family holiday.
The comparison website’s publisher Jeremy
Cabral says the consequences of skipping a home loan repayment can be serious.
“It can be tempting for homeowners to hang
onto their cash over the coming weeks to pay for Christmas gifts and holidays,
but be warned – this comes with serious implications,” Cabral says.
“You can get hit with additional fees, a
higher interest loan or in some cases be required to pay the balance of the
entire loan immediately.”
Penalties vary from lender to lender but if
you’re dodging the bank’s calls or ignoring letters, the punishment might be
swifter, he says.
Cabral says the lender will likely pass on
the cost of managing your missed payments, which could be as much as $55 per
month. Dishonour fees might also be applied to your loan.
Diverting your repayments to flashy goods
or a getaway isn’t worth the hassle.
“Homeowners should take the opportunity to
take control of their finances and ensure they’re getting the most value for
their money,” he says.
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Tight rental markets heat up
Investors pick up first homeowners’ slack
Consumer confidence bodes well for property
Six ways to make your resolution a reality
Returns on property rose in 2012
More protection for buyers and sellers
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/58FQ0WuYRiA/forget-the-bank-we-want-gadgets-and-holidays
Tight rental markets heat up
Tight rental markets heat up
Posted on Thursday, January 17 2013 at 11:09 AM
Capital cities where demand for rental properties remains the strongest saw strong price growth once again in the December quarter.
At a national level, median asking rents
for houses rose slightly by 0.8 per cent while units saw a modest lift of 0.2
per cent.
The biggest increase was seen in Perth,
where the cost of renting a house rose 4.4 per cent to $470 per week and unit
rents jumped 2.6 per cent to $400 per week.
That impressive result is mostly thanks to
an influx of new arrivals in recent times, putting pressure on an already
limited rental market, Australian Property Monitors senior economist Andrew
Wilson says.
Asking unit rents in Sydney rose 2.2 per
cent to $460 per week in the three months to year-end. House rents remained
steady at $500 per week.
Wilson says underlying demand in the New
South Wales capital remains strong, driven by a chronic shortage of new housing
supply.
Brisbane saw a 2.6 per cent lift in house
rents to $390 per week, while units experienced a 1.4 per cent gain to $375 per
week.
Competition for accommodation in southeast
Queensland is on the rise, with the vacancy rate in Brisbane continuing to
tighten.
“The upward pressure on rents is set to continue in
markets such as Perth, Brisbane and Darwin with Sydney also set to resume
rental growth in 2013 for both houses and units,” Wilson says.
Melbourne’s rental market looks to have
stagnated over 2012, with asking rents for both houses and units showing no
movement in the December quarter.
“Melbourne will continue to provide the best value for
tenants with rents to remain stable or even decline over 2013,” he says.
Gross yields for houses were up in every
capital city with the exception of Sydney, Melbourne and Darwin, which recorded
slight dips into negative territory.
The yield story is more positive for units,
with every city experiencing growth in the quarter except Canberra and Hobart.
“Brisbane and Perth are providing investors
with the best gross rental yields for houses, each with 5.27 per cent reported
over the December quarter,” Wilson says. “Perth also has the highest gross
rental yields for units of the major capitals at 5.77 per cent, reflecting the
recent surge in rental growth.”
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/oMCDiDTQSqA/tight-rental-markets-heat-up
Investors pick up first homeowners’ slack
Investors pick up first homeowners’ slack
Posted on Wednesday, January 16 2013 at 10:34 AM
Investor confidence has strengthened but first homeowners haven’t followed suit, according to housing figures released by the Australian Bureau of Statistics (ABS).
New
data shows that in New South Wales and Queensland, first homeowners are
responding to recent cuts in State Government grants and stamp duty exemptions.
First homebuyers, which usually comprise between 12 per cent and 15 per cent of
home loans arranged in these states, fell to 4.2 per cent in NSW and 4.5 per
cent in Queensland.
Conversely,
investors are signalling confidence, with ABS housing figures for November
showing that the number of finance commitments has increased by 0.4 per cent.
“In
trend terms, increases were evident in Queensland, Western Australia, Victoria,
the Northern Territory and the Australian Capital Territory,” says Peter
Bushby, president of the Real Estate Institute of Australia.
“The
largest increase was in the Northern Territory, up 2.1 per cent in trend terms
whilst declines were recorded in South Australia (0.6 per cent) and Tasmania
(0.5 per cent),” Bushby says.
The
improvement in borrower confidence is also evident in
figures from national mortgage broker Australian Finance Group (AFG) that show the
volume of mortgages arranged by the company increased by 15 per cent in 2012
over 2011 numbers.
AFG
has about 10 per cent of the national mortgage market, according to its data.
Follow us on Twitter.
Was this article helpful? Place a link to it from your website, or share it using the button below.
Recent articles:
Investors pick up first homeowners’ slack
Consumer confidence bodes well for property
Six ways to make your resolution a reality
Returns on property rose in 2012
More protection for buyers and sellers
NT development fees rise
Leave a comment
Comments
Article source: http://feedproxy.google.com/~r/API_Property_News/~3/6FTQAOC_APM/investors-pick-up-first-homeowners-slack