Melbourne House Prices Still Rise
In An Otherwise Falling Market
Melbourne Home prices increased by 1.07%
in the 3 months to October to a new
$451,661 average price, according to
RP Data-Rismark International.
Tim Lawless, their National Research Director,
said “The facts are that over the past 12 months
Australian property values have declined by
just 0.8%, which is a phenomenal result
when compared to the S&P/ASX 200 Index,
which has reported a decline of 40.5%”
Additionally, the supply of residential housing
is at an all time low, down from 17000 dwellings
a month to 13000 dwellings per month and
continuing to fall, with no foreseeable over supply,
according to the HIA (Housing Industry Association)
for up to 5 years.
These facts predict a strong future for Victorian housing.
Macquarie Bank Rejects NSW Academic’s dire predictions!
University
Some Academics just don’t seem to get it!
Convinced home prices are going to get worse
A NSW University academic’s prediction insists
his research indicates house prices will
collapse by up to 40 percent in addition
to the economy going into depression.
But the sensational headlines it created
have been rebuffed by most commentators
including the Macquarie Bank which insists
such a fall has only a 1% chance of happening.
The Reserve Bank of Australia, (RBA)
Cuts Rates by 1.00%
In line with market expectations,
the property market welcomed the Board’s
announcement today to drop the
basic cash rate from 5.25% to 4.25%.
This drop of 1% had the analysts saying
it is indicative of the way the RBA is
determined to keep Australia out of recession.
More land at lower cost essential
for residential recovery
Meanwhile Developers are having a hard time!
Spiralling land costs and the inadequate
release of new land could inhibit a recovery
in residential dwelling construction,
according to a report from the
Housing Industry Association and RP Data.
Median land prices have increased by
106 per cent in the last six years,
posing a considerable barrier to new home
construction which is desperately needed
to improve dwelling supply according
to the combined groups’ Residential Land
Report released yesterday.
HIA chief economist Harley Dale said
soaring land prices combined with poor
release levels and planning delays
threatened the prospects of a
substantial recovery in home building
activity as well as the anticipated boost
to the wider economy.
“We now have falling interest rates and
a tripling of the First Home Owners Grant
which should provide a boost to new home
building and the wider economy in 2009.
“There is however a real risk that the
perennial problems of inadequate land release
and excessive planning delays prevent
the industry from boosting supply to the
extent required over the next 18 months.
That would come at a cost to the entire
Australian economy,” he said.
Tags: Home Loan Interest Rates
