WA is the place where the migrants love to stay. WA is the home for homebuyers and it considered as the capital for so many jobs.  Mining is one of the most known in WA which encourage staying for good. In WA suburbs, Perth is considered as a lifestyle living and many are decided to raise their family.

According to Australia’s major housing industry lobby group, “Conditions in western Australia’s home building industry are now the strongest in the nation.” WA residential building industry is the strongest in the country because of the strong population growth. Migrants also feel that they were safe where they live and on the property either. Trough this, we see all the indicators which driven WA to lead all capital cities.

http://www.oneperth.com.au/2013/11/26/wa-nations-housing-hotspot/


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Because of the devastation of bush fires hundred of homes lost and selling of house in Australia stopped. Many of the owners have insurances that make them to start to build a new home. Did the bush fire affects the market softens?

According to CMC markets Chief Market Strategist Michael McCarthy, “Clearly overseas leads have broken the back of the recent pessimism.” After the bush fire which made the share market fell down. Australian market opens higher because of the strong performances by some commodities. Community strength sets the market to open higher. The economy is clearly improving and recovering. Probably, we will be ended in a good and sustainable market.

http://www.thebull.com.au/articles/a/42306-aust-shares-bounce-back.html


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Interest rate remains the same with 2.5 basis points. Economists believe that there is no interest rate cut until the year ends. The forecasts are, predicted on a constant exchange rate. But we cannot predict the economy because sometimes it is swinging.  But there will be forecasts that there will be a possible cut next year. Will it be possible?

Westpac’s Chief Economist, Bill Evans, after the RBA’s meeting, he sees a possible two more cuts in 2014. According to Bill Evans, the stubbornly high Australian dollar, and a weaker than expected housing led recovery. If the housing market condition strengthens, it associated boost to wealth. Business and consumer confidence should strengthen to sustain the economy into 2014. If it will happen, interest rate may cut and possibly it will drive the housing market to boost.

http://www.macrobusiness.com.au/2013/11/bill-evans-sees-two-rate-cuts-in-2014/


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According to Mark de Martino, Director at Mortgage Provider Loan Market, “first home buyers nationally were competing with investors and upgrade’s who had significant equity in their property.” Nowadays, first home buyers in Western Australia are increasing and it will continue to increase. A WA house price is relatively attractive destinations for the home buyers to invest because of the strong wage growth. Compared to other capital cities, Perth was cheaper by 20% and it encourages first home buyers to enter and invest the market. Mining is the driver in WA’s economy which attracts first home buyers. Therefore, by 2014 it will encourage more first home buyers to support the economic activity. In addition with that, we have low interest rates, population keeps rising and business confidence is relatively high.

http://www.perthnow.com.au/realestate/news/wa-bucks-national-firsthome-buyers-trend/story-fnhlgriw-1226758105719

 


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The Australian families that rent have risen because some people giving up on buying their dream house. Nowadays, people are preferably to rent than to purchase mortgage home. One of the reasons why they prefer to rent is the cost of purchasing a house continues to rise.

According to Ben Phillips, from the national Centre for Social and economic Modeling, “Renters, facing such a high median house price are less able to afford the required deposit that is required to enter the housing market than they were back in 1980’s. The population is growing and household and houses are less in the number of the needy family. Through this data, house prices accumulate and increases.

 

http://www.perthnow.com.au/news/aussie-home-ownership-dream-meets-harsh-reality/story-fnhnv0wb-1226743080343


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According to NAB’s Chief Economist, Alan Oster, “the pull back in confidence suggests business may have reassessed their expectations for the outlook given the continued weakness in actual conditions.” Last September, it was already reported that business confidence dropped and continues to drop until October. Business confidence may be still buoyed by positive housing trends and low borrowing rates. If the business, property and finance will improve it keeps the confidence high. Interest rate still at 2.5% which pull the economic activity remains soft. But we still think that, if the RBA will have interest rate cut, it will help the economic optimist boost.


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The National Australia Bank released the Commercial Property Survey yesterday, November 13, 2013, Commercial property market lead the market. It improved and it shows the stronger capital returns but retail property growth become modest.

Based on the survey, the strongest is the CBD hotels and it expected to rise over two years. It found that hotel driven the business travelers. Indeed, Economists are still optimistic for the improvement of the business over the coming years.

Commercial Property Survey Summary _September 2013_.pdf (457.31 kb)


Tags: nab survey

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According to Emma Chalmers, Head of residential Sales at CKD Galbraith’s Perth Office, “Confidence started to return to the Perthshire market during 2012 and this year’s continued activity has really cemented the recovery within the region.” This year the Perth property market shows strong growth which driven by stronger population growth. Western Australia Economy is continuing to grow strongly even the consumer confidence remains slow. Perth’s property market is expected to grow next year and at the moment, it performs well.

http://www.thecourier.co.uk/news/local/perth-kinross/optimism-after-perthshire-property-market-growth-1.149838


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During the Melbourne Cup Day board meeting, Reserve Bank of Australia kept the cash rate at a record low of 2.5%.  RBA still consistent with their October decision to leave rates on hold as expected.

 

According to RBA Governor Glenn Stevens, “Economic growth was still a little bit below trend, but he expects the economy to pick up next year.” Lots of factors why RBA decided to leave interest rate on hold. The currency is higher compared with past a month which drags the economy weaker. The currency needs to be in the level of exchange to help the balance growth in the economy. But December is approaching, we need to be still optimistic and be hopeful that by the end of the year, we will have a better economy.

http://www.news.com.au/business/breaking-news/no-more-cash-rate-cuts-expected/story-e6frfkur-1226753136441


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September quarter recorded mixed results because of the multi-paced recoveries in Australia’s capital city housing markets. All capital cities recorded increases in median house prices last month. But still the house prices continue to rise.

 

According to RP data and Rismark International released, “A continued growth across many markets, with the rolling 12 month combined capital city index recording its fastest pace in three years.” Capital city showed increases by 1.3% over the month of October and Sydney market is driven largely by the strong-performing market. Last September, other capitals reported mainly subdued and Perth market remains flat. The housing market will continue to record solid to strong and Perth market is showing early signed in solid growth.

http://www.apimagazine.com.au/api-online/news/2013/10/house-prices-continue-to-rise


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According to RP Data Survey, “Hosing market confidence has fallen just a tad over the 12 months.”

 But the RP Research Director Tim Lawless says, “The most optimistic responses came from participants in areas where dwellings haven’t shown a substantial rise in value in the current cycle.”

 

The Australian dollar burns, the share market continues to feel the strain and currency would have been expected to decline. Despite of all negative feedbacks, the market indicates the growth forecast and investors have already decisions for future projects. Australians are very optimistic and they believe that’s values will rise, housing market will grow for these coming years.

http://www.apimagazine.com.au/api-online/news/2013/10/market-confidence-drops-slightly-rp-data


Tags: Confidence

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