22/03/2010
Median house prices have once again recorded increases across all Australian capital city property markets over the December quarter, highlighted in the Real Estate Institute of Australia’s (REIA) Mortgage Choice Real Estate Market Facts report.
"Last quarter we reported that median houses prices were the highest we have ever seen in the history of collecting this data, and this quarter the results have topped the previous quarter", said REIA President, Mr David Airey.
This quarter has seen the Australian weighted average median house price increase by 8.1% to $514,599; this is compared to an increase of 16.7% over the year.
"This is the highest quarterly annual increase since 1997," continued Mr Airey.
Melbourne house prices reported the highest increase during the quarter and the year. Over the December quarter, Melbourne house prices increased to $540,500, an increase of 15.0% over the quarter and 27.2% over the year.
Median prices for other dwellings increased across all Australian capital city property markets by 4.3% over the quarter and 13.7% over the year. Melbourne, Darwin and Sydney have reported the highest median other dwelling prices while the lowest were recorded in Hobart, Adelaide and Brisbane. Canberra was the only capital city to record a decrease in median prices for other dwellings.
Mr Airey commented on the reason for the rising prices saying, "The phasing out of the First Home Owners Grant Boost (FHOG Boost) has contributed to the increases that we are seeing in median prices. For the majority of 2009, the property market was dominated by first home buyers in the lower end of the market. As the first home buyers retreated from the market, buyers in the higher priced sectors influenced the median price for the quarter."
The Real Estate Institute of Australia (REIA) is the national professional association for the real estate sector in Australia. For further information or interview opportunities, please contact: David Airey REIA President 0418 906 002
The following article is supplied by the Commonwealth Bank
Economic Developments & Interest Rate Outlook:
A spate of local economic data over the past month has signalled an economy picking up momentum in late 2009 and early 2010. In particular, the labour market data is flashing strongly that jobs market conditions are tightening rapidly. Indeed, after five months of very strong growth in which a “shade” under 200k jobs were created, the headline employment increase in February was a modest 400. The unemployment rate has dropped by ½% to 5¼%. However, as they say, “every silver lining has a cloud’, and in this case, the rapidly rebounding labour market brings with it the danger of potential intensifying wage pressures which could flow through into underlying inflation, against the backdrop of a strong upturn in economic activity over the next year or two. Tellingly, consumers don’t seem too frightened by the latest RBA move, and plenty of media talk about multiple rate hikes ahead. On that score, we see the RBA’s next 0.25% rate hike in May after the QI CPI in late April. We expect a cash rate of 5.00% by the end of 2010, and 5.50% by mid 2011. Consistent with this, we see Oz swap rates tracking higher in 2010 as the RBA tightens policy and as global rates track up on recovering global growth and central bank policy tightening.
This week, in the absence of any major scheduled economic data releases, local central bank tidings will take centre stage. RBA head honcho Stevens will be making a speech to the ACI World Congress on Friday. Assistant Governor Lowe will address an AiG Conference on the economy on Thursday. Moreover, the semi- annual Financial Stability Report will be scrutinised for any possible problems or worries about the local financial system’s health. Also, the ABS’s latest demographic data will be watched by markets. Strong population growth was one of the key buffers or shock absorbers for the local economy against the negative growth waves from the GFC induced meltdown in global economic growth in 2009 24/12/2009
Real Estate Institute of Australia
16 Thesiger Court I PO Box 234, Deakin ACT 2600
Phone 02 6282 4277 I Fax 02 6285 2444
www.reia.com.au I reia@reia.com.au
Media Release
7 December 2009
Small decreases in housing affordability will start to add up
This release is embargoed to 12.01am, Monday 7 December 2009.
The Real Estate Institute of Australia’s (REIA) Deposit Power Housing Affordability Report has shown a small decline in housing affordability over the September quarter 2009.
"Although only marginal, the second decline in housing affordability in as many quarters is not positive news for those trying to pay off a mortgage or looking to purchase a home," said REIA President, Mr David Airey.
It is important to note that the September quarter data does not reflect the results of the subsequent three interest rates rises.
"Since economic recovery showed those first green shoots, the REIA has continually warned that despite the early and promising signs, rapid interest rate increases have the potential to dampen the market and stifle recovery. With this in mind, housing affordability could decrease even further in the next quarter, which is a major disappointment for Australians," said Mr Airey.
"We also have the issue of a housing supply shortage, which is not helped by higher rates. It’s a big issue for the Federal Government who will be aware of the potential damage these sudden rate increases will cause not only to the 200,000 first home buyers who have bought a home in the last year, but also to developers and builders." continued Mr Airey.
"The tables appear to have turned very quickly in the Australian housing market, and from a period of extremely low interest rates and high housing affordability, we appear to again be facing escalating interest rates, and no ease in sight for property prices," said Deposit Power National Manager, Mr Keith Levy.
The September quarter report has also recorded a slowdown in the total number of housing loans, particularly those to first home buyers, who have benefited from the First Home Owners Grant Boost (FHOG Boost).
"Factors such as tighter lending criteria and a decrease in demand in certain segments of the market could explain the deceleration in the number of housing loans," concluded Mr Airey.
The REIA Deposit Power Housing Affordability Report is the most comprehensive report on the ability of Australians to meet the finance cost of home purchase, being based on data from the Australian Bureau of Statistics (ABS), major lending institutions and state and territory Real Estate Institutes; all of which undertake extensive sampling to determine market trends.
The Real Estate Institute of Australia (REIA) is the national professional association for the real estate sector in Australia. For further information or interview opportunities, please contact:
David Airey REIA President 0418 906 002
Rhiannon McClelland REIA Manager Communications n 0421 422 919 16/06/2009Westpac and NAB both announced increases to their fixed rate mortgages yesterday.
Effective today, Westpac's fixed rate loans will rise by between 10 and 50 basis points. The hike will take its three year fixed rate mortgage to 6.59 per cent – just 10 basis points behind CBA, who pushed up its fixed rates yesterday.
NAB also increased its fixed rate mortgages by between 15 and 40 basis points, with its three year fixed rate loan increasing by 40 basis points to 6.49 per cent.
While speculation that variable mortgage rates are set to rise has heated up off the back of CBA's 10 basis point SVR hike on Friday, a spokesperson for NAB emphasised that no such plans were in the pipeline.
"There are no current plans to move on our standard variable rate," the spokesperson said.
St George's three year fixed rate now sits at 5.99 per cent – the lowest of the major banks – while ANZ, which moved to lift its three year rate a fortnight ago, is offering a rate of 6.34 per cent.
16/6/09
Westpac and NAB both announced increases to their fixed rate mortgages yesterday.
Effective today, Westpac’s fixed rate loans will rise by between 10 and 50 basis points. The hike will take its three year fixed rate mortgage to 6.59 per cent – just 10 basis points behind CBA, who pushed up its fixed rates yesterday.
NAB also increased its fixed rate mortgages by between 15 and 40 basis points, with its three year fixed rate loan increasing by 40 basis points to 6.49 per cent.
While speculation that variable mortgage rates are set to rise has heated up off the back of CBA’s 10 basis point SVR hike on Friday, a spokesperson for NAB emphasised that no such plans were in the pipeline.
“There are no current plans to move on our standard variable rate,” the spokesperson said.
St George’s three year fixed rate now sits at 5.99 per cent – the lowest of the major banks – while ANZ, which moved to lift its three year rate a fortnight ago, is offering a rate of 6.34 per cent. 1/05/2009
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David has been selling real estate in the Claremont and Nedlands and other western suburbs areas for over 3 decades. David is a Licensed Real Estate Agent since 1976 and Auctioneer since 1977. Currently Deputy President of REIWA, member of the Finance & Audit Committee of REIWA and a Director/Deputy President of the Real Estate Institute of Australia. David is one of the most experienced and respected real estate agents in the western suburbs. He has a simple and straightforward commitment to you: “To serve you honestly, professionally and ethically at all times”. |
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