When people talk about competition, they normally focus on the number of companies competing for your business. As anyone who’s ever flown to a destination that was historically only served by Qantas, and then has Virgin or Tiger starting up, as a general rule you’ll understand that more players generally makes for a more competitive environment.
Everyone at Barry Plant Croydon would like to wish all of our clients a wonderful festive season & a safe & happy New Year.
The ABS released housing finance data for October 2011 this week. The data showed that the volume of owner occupier housing finance commitments excluding refinances increased for the eight successive months and has risen by 1.2% over the past 12 months. The successive increases in owner occupier finance commitments is somewhat encouraging for the housing market however, refinances continue to dominate the landscape, rising by 17.8% over the year however, they did fall by -1.8% in October.
The housing market is constantly in a tug-o-war between two factors — demand and supply. And really it doesn't get simpler than that. If there is a limited number of properties for sale and plenty of keen, cashed-up buyers then prices are almost certainly going to be bid up. Similarly if there is an abundance of property on the market and buyers are cautious — preferring to take time to find the 'right' home — then prices are more likely to ease.
The Reserve Bank has cut interest rates by 0.25 per cent. The 25 basis point fall comes on the back of a similar cut last month. The reduction is good news for people paying off a mortgage. "This will put an extra $60 into the pockets of borrowers each month," says Domain property expert Carolyn Boyd.
Contrary to popular belief, property prices in Australia over the past 30 years have only grown in line with rising incomes and lower interest rates, a prominent property economist has claimed.
Head of property research at ANZ Bank, Paul Braddick, said today's purchasing power was equal to the actual cost of the average home (including mortgage payments), as it was during the mid-1980s.
Australian house prices could plunge by as much as 25 per cent on the back of a global credit crunch caused by the European meltdown, The Economist magazine predicts.
In a dire warning for Australia and other developed countries, The Economist says global house price indicators suggest property was still overvalued.
THIS month's interest rate cut is yet to have a noticeable effect on auction clearance rates but it has given buyer confidence a boost, say agents.
Many are reporting a positive change in buyer sentiment, which will be put to the test this coming weekend, when more than 1000 auctions are scheduled.
AUSTRALIANS have more and more bedrooms, but more and more often they are empty. The latest biennial housing survey by the Bureau of Statistics finds us with more empty bedrooms than ever before and also less likely to own our homes outright.
Traditionally one of the world's highest, Australia's rate of outright home ownership has slipped from 42 per cent to 33 per cent in the past 15 years. Read More
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