Join us for a live discussion about the current state of the markets with Chris Bates from Wealthful, on the day the RBA will lift rates again. You can ask a question live.
Go to the Walk The World Universe at https://walktheworld.com.au/
Category: Property Market
Its Edwin’s Monday Evening Property Rant!
In our latest Monday Rant we look at the latest from our Wee-Chatters, the latest numbers, and “innovative” property solutions, as rate rise and pressure on households build.
https://www.ribbonproperty.com.au/
Go to the Walk The World Universe at https://walktheworld.com.au/
Loans And Building Approvals Up – But Don’t Lift Mortgage Rates!
The latest data from the ABS on new loans and building approvals contain some interesting insights, but the Canstar survey says borrowers do not want more rate hikes (any surprise?), ahead of the RBA decision tomorrow.
Go to the Walk The World Universe at https://walktheworld.com.au/
Homing In On Price Falls, With More To Come…
The latest figures from CoreLogic show prices for homes are easing, and in some places falling. We look at the data, in the light of pressures on households, and rising stress as reported in our latest surveys. And we consider the future trajectory, sheeting the shape of price changes and wealth directly at the door of RBA monetary policy
[CONTENT]
0:00 Start
0:15 Introduction
0:25 June Price Moves
1:50 Major Cities
2:50 Regionals
3:50 Listings and Sales
5:50 Rentals
7:50 Outlook
12:00 Commentary
13:00 Latest Mortgage Stress
13:50 RBA will influence falls or gains
17:45 Conclusion and close
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.
Fixed Mortgage Rates To The Moon! With Steve Mickenbecker
On The Day CBA lifted their fixed mortgage rates 1.4% I caught up with Steve Mickenbecker from Canstar to discuss the implications of this, and the broader rate landscape as borrowers are being forced to pay more. While depositors are having a small win, the impact of rate hikes is concerning.
That said, households can take some steps to try to alleviate the pressure, though one popular one, cancelling health insurance is beset with issues.
Steve Mickenbecker is in Canstar’s Group Executive Team, bringing more than 30 years of experience in the Australian financial services industry. As a financial commentator for Canstar, Steve enjoys sharing his expertise across topics such as home loans, superannuation, insurance, mortgages, banking, credit cards, investment, budgeting, money management and more.
Go to the Walk The World Universe at https://walktheworld.com.au/
Its Edwin’s Monday Evening Property Rant!
Our latest property chat with Edwin Almeida. A special discussion on the “levers” which might be used to try to prop property prices up, as the rate of fall increases.
https://www.ribbonproperty.com.au/
Go to the Walk The World Universe at https://walktheworld.com.au/
Crunch: Forget That New Mortgage!
Rising interest rates are already putting more pressure on households and now banks are reducing their ability to lend at high multiples with an effective reduction of “Borrowing Power” of up to 20%. Combined, this will put more stress on property owners and renovators.
APRA has written to the banks stressing the importance of sound mortgage lending. Better late than never!
WA may well see some of the biggest changes.
Go to the Walk The World Universe at https://walktheworld.com.au/
Kiwi’s Vote With Their Wallet…
A quick look at the very gloomy New Zealand Household Confidence Index.
The News From New Zealand is getting worse and worse (such that next years election result will now be really interesting). The latest is from the Westpac Mcdermott Miller Consumer Confidence survey results released this week.
Confidence among New Zealand households has plummeted, dropping to its lowest levels since we began surveying consumers back in 1988. The Westpac McDermott Miller Consumer Confidence Index fell 13 points in the June quarter to a level of 78.7. Confidence has only come close to these sorts of lows twice before – first during the recession in the early-1990s, and then again during the Global Financial Crisis in 2008/09.
Go to the Walk The World Universe at https://walktheworld.com.au/
New Zealand Wins The Bubble Prize!
World equities are now in a bear market. The most excessive speculation has already been washed out of the system. Those warning of bubbles in bitcoin and other cryptocurrencies, meme stocks, or the growth tech companies have been proved right.
If there is one asset that should come under scrutiny, it is real estate, whose life blood is credit. For a double whammy of higher rates and the lasting effects of the pandemic, look to office property. Remarkably, Bloomberg’s index of US office property real estate investment trusts, or REITs, is slightly lower now than it was 20 years ago, and almost back to the lows it hit during the worst of the pandemic in 2020.
That brings us to housing. Rates in the mortgage-backed bond market are surging, as would be expected given the move in Treasuries, while the rates actually offered to US borrowers are even higher. Typical 30-year mortgage rates are now a whisker below 6%, and approaching the pre-crisis high of 2006
A world economy already contending with raging inflation, stock-market turmoil and a grueling war is facing yet another threat: the unraveling of a massive housing boom.
As central banks around the globe rapidly increase interest rates, soaring borrowing costs mean people who were already stretching to buy property are finally reaching their limits. The effects are being seen in countries such as Canada, the US and New Zealand, where once-hot residential real estate markets have suddenly turned cold.
Go to the Walk The World Universe at https://walktheworld.com.au/
Operation Anti-Spruik Part 2
More detailed examination of home price movements, using data from Cookie Boy and DFA modelling. There is mounting evidence of significant price reductions, and some common threads relating to mortgage stress and scenarios.
Let us know if there are specific areas you would like us to research in future shows..
Go to the Walk The World Universe at https://walktheworld.com.au/