Australian Real Estate Blog
From the category archives:
Housing Affordability - “Land the issue - not prices” - Senior Australian Reserve Bank Official - Sydney Morning Herald - 28 March 2008
Land the issue, not prices - National - smh.com.au
and
Housing grants drive up prices - Bloomberg
RBA slams subsidies for home buyers - Breaking News - Business - Breaking News
Much of the domestic focus this week was on the Reserve Bank Board’s March policy meeting minutes. This play-by-play analysis of the underlying strength of the Australian economy led to the inevitable conclusion that monetary policy needed to be more restrictive and interest rates were raised 25bps.
Dinner didn’t taste so good last night. In fact I almost choked on my pasta after receiving a letter from my lender. Signed by the customer service centre, they wrote to advise that the fixed interest period has now matured. Not matured like a fine wine, but more like prawns in the sun. The 6.5% interest that I had been paying over the last three years has now notched up to 9.4% in one hit. That will be an extra $1000 per month, thanks very much. Yowsers!
Legislation which will cut stamp duty by about 5 per cent in Western Australia has passed through the Lower House of Parliament.
The Treasurer Eric Ripper says all taxpayers, but particularly homebuyers, will benefit from the Duties Bill, which will be replacing the Stamp Act of 1921.
Home ownership has become a bigger challenge across the Barossa and Gawler district.In fact, the two interest rate rises felt by Australians within three months, means housing affordability is at its lowest with an average of 27.4 per cent of income now required to service a mortgage, the Real Estate Institute of Australia has revealed.
Those who rent will also be expected to curb household expenditure habits with 99 per cent of available stocks rented costing people about 24 per cent of their wages.
According to Guy Draper, principal of LJ Hooker, based in Nuriootpa, the interest rates rise will start to take affect on the area.
“But I don’t think it will be as a massive impact,” he said. “What we may see are the more established homes with four bedrooms in the high to $300,000-$400,000 price range will start to slow down in sales and the middle price range will continue.”
Guy explained the area’s market is normal and has been for a while.
He believed real estate agents may see some properties come on the market as owners feel forced to consider their options as they feel the bite of recent interest rate rises.
He added there would be some who will consider downsizing their homes to live comfortably, but felt it would be homeowners who had overcommitted themselves.
The Mortgage Choice/REIA Real Estate Market Facts released has reported that the Australian weighted average median house price moved beyond $450,000 in the December quarter 2007 to reach $471,300.
Housing affordability has sunk so low that the majority of Australians who have yet to take out a mortgage expect that they may never purchase a home, new figures show.
