Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
More melding from the Government relating to housing, which is not aimed at tackling the real issue, but simply trying to make a positive headline. That triggered a rant from me on the stupidity of the current situation.
Go to the Walk The World Universe at https://walktheworld.com.au/
It is amazing the impact of cheap credit has had on the property market as illustrated by the latest from the ABS. They say that Residential property prices rose 23.7 per cent through the year to December quarter 2021, the strongest annual growth since the Residential Property Price Index series began in the September quarter 2003, according to figures released today by the Australian Bureau of Statistics (ABS).
“Results were consistent with a range of housing market indicators. New lending commitments for housing rose to a record high value in the December quarter 2021. Days on market fell and sales transaction volumes increased. Record low interest rates and strong demand have continued to support growth in property prices”.
The total value of Australia’s 10.8 million residential dwellings rose by $512.6 billion to $9,901.6 billion in the December quarter 2021. The value of residential dwellings has risen $2,015.1 billion since the December quarter 2020. The mean price of residential dwellings in Australia was $920,100, up from $876,100 in the September quarter 2021.
This is essentially fake wealth, and it is unlikely we will see significant momentum ahead – indeed there are signs it is weakening.
Go to the Walk The World Universe at https://walktheworld.com.au/
The latest from our property insider, as we consider the real story behind the flooding, risks when buying older property, mortgage stress, and the latest from China.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Go to the Walk The World Universe at https://walktheworld.com.au/
More bribes for First Time Home Buyers, which actually work AGAINST housing affordability, and are another example of “unnatural acts” to keep the bubble going.
The Tasmanian state government will take over from “the bank of mum and dad” to help young home buyers achieve their dream of owning a place of their own.
The revamped Housing Market Entry Program will mean potential purchasers can buy a home with as little as a two per cent deposit — and the government will kick in up to $200,000 of the purchase price as an equity contribution.
It would mean an eligible applicant wanting to buy a $500,000 home could do so with a deposit as low as $10,000 and a mortgage of $300,000.
“The government will actually provide people with the opportunity to have the government as an equity partner, in the first home, either build or purchase.”
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
The latest from Edwin as we discuss flooding, auctions, and the lack of vodka. https://www.ribbonproperty.com.au/
Go to the Walk The World Universe at https://walktheworld.com.au/
Westpac says Australia’s housing market boom is showing clearer signs of slowing with sentiment pointing to a decline in turnover through the first half of 2022. More importantly, the medium term outlook has shifted materially with an interest rate tightening cycle now expected to see a broad-based correction phase begin later this year, continuing throughout 2023 and into 2024.
According to Westpac’s February 2022 Housing Pulse report, the housing market boom is showing clear signs of slowing with sentiment pointing to a decline in turnover through the first half of 2022.
The report detailed how inflation and labour market challenges are shaping the view on interest rates, which will impact the property markets and further divergence among states.
As lenders already begin to raise rates, ahead of the Reserve Bank of Australia’s cash rate rise, and house prices soar, a housing “correction” is forecast for 2023 and 2024.
Nationally, prices lifted 2.5 per cent since November 2021, which was a fall from the peak of 7.1 per cent in May 2021, but an annual gain of 21.1 per cent.
The “extraordinary” surge in prices has seen affordability deteriorate with new projections now forecasting house prices will “flatten” by May this year, ahead of a move into outright correction in the December quarter.
Overall, that would see a net gain of just 2 per cent over 2022.
House prices are then forecast to fall 7 per cent in 2023 and by a further 5 per cent in 2024, before stabilising towards the end of that year.
Nationally, the peak to trough fall of 14% is around the average of corrections seen historically.
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
The latest from Edwin Almeida, our property insider.
https://www.ribbonproperty.com.au/
Go to the Walk The World Universe at https://walktheworld.com.au/
NAB has revised down its outlook for property prices in 2022 and 2023, after predicting the first interest rate hike to occur in November this year.
Property prices are now expected to reach a “turning point” in the second half of 2022 before falling in 2023, according to the latest residential property survey from NAB’s Group Economics, led by group chief economist Alan Oster.
“Overall, we see dwelling prices rising around 3 per cent in 2022 before a decline of around 10 per cent in 2023,” NAB said.
A federal housing affordability inquiry is expected to hand down its final report in the coming weeks outlining recommendations on ways to improve housing affordability.
The Reserve Bank has emphasised the importance of lending standards as housing and business loans have bounced back following lockdowns.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Go to the Walk The World Universe at https://walktheworld.com.au/
We walk through the latest RBA chart pack. Some interesting facts to consider…
https://www.rba.gov.au/chart-pack/
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Go to the Walk The World Universe at https://walktheworld.com.au/
Today we look at the latest from New Zealand which is we think a likely leading indicator of what is ahead more widely.
ANZ New Zealand just released a report called More work for the OCR to do. They say, “we have changed our OCR call, adding in 25bp hikes in the April and July Monetary Policy Reviews, in addition to the hikes we were already forecasting at the next four MPSs. This new track sees the OCR reach 2% in August 2022”.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.