Australia’s housing market is in a constant diversity and volatility of the factors that drive housing market activity. The resources boom is over since mining and international economy slowed down. Having better economy, a nation market should have strong migration and continuing high level of confidence. But why is it the housing market remain flat?

According to Domain Group Senior Economist Dr. Andrew Wilson, “Without a sustained revival in economic activity, housing markets will continue to soften, ending the debate about macro-prudential tools or changes to property taxation policy designed to offset local and foreign investor activity.”

Going forward, if the investor will start to lose interest, housing market is going to have much flatter in terms of price. Last September showed that the sales of Australian housing market were subdued. In terms of number of sales, the market has been decreased and it is holding ground.

http://www.apimagazine.com.au/api-online/news/2014/10/australian-house-price-growth-slows

 


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“While the overall index was unchanged, the picture was mixed across the county, with Queensland overtaking Victoria as the strongest state, SA/NT the big improver and sentiment still falling very heavily in WA”. A NAB Group Chief Economist Alan Oster said.

 

National Australian Bank released their Residential Survey last October 15, 2014. The survey shows that the national house prices in the next 1-2 years improved in all states but there is a forecast expectation that rental growth weakens. The demand of buyers is still increasing and now is a great time to build more. This is the key and very significant to attract investors to boost the buying activity. Rising unemployment, sluggish household income growth, and affordability issues are the factors that make the market become more modest. Among all the states Brisbane and Sydney are expected to lead the market but Perth continues to weaken. Confidence in property market in Perth is collapsing which warns the city lagging. The survey shows pessimistic forecast because of rising trend unemployment.


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According to Glen Stevens, Governor of the RBA, “In Australia, the most recent survey data indicate gradually improving business conditions and some recovery in household sentiment after a weaker period around mid-year, suggesting moderate growth in the economy is occurring.”

Last September, RBA leaves the cash rate unchanged by 2.5% which really affect the home buying activity. Perth’s market remains fair because of the steady growth in median house price. September sales increased by 1% which was fair with regards to real estate sales whilst median rent has remained steady at $450 per week. Perth region remains strong and have potential in profitably opportunity because of the consistent population growth. This is one of so many factors why Perth remains solid despite of market softening. Low interest rates and increase of demand for residential homes is making investors and homebuyers to see the Perth region as a place where can strengthen the long-term investment.

http://www.wboy.com/story/26702123/perth-residential-property-continues-to-show-growth

 


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“The September result would be seen as a positive indicator by the RBA, which has been considering additional measures to curb lending to property investors, “Head of research at RP Data, Tim Lawless said.

 

The annual trend of capital growth has been trending lower and seen the housing market conditions remain very buoyant. If this condition will occur, it is a warning to take more action taken in order to have stable strategy. Economists expect the strong lift in approval to furnish new houses. If the supply will lift, it will help the house price growth. When the housing activity continues to going strong, it makes the backbone of Australia’s growth. When the residential construction strengthens, there will be a huge positive impact on the economy. Therefore, house values remain unchanged over September but housing construction is the best way to rein surging house prices.

http://www.theaustralian.com.au/business/property/house-prices-flat-for-september-as-rba-weighs-moves/story-fniz9vg9-1227076156722?nk=b86683605d4f71e7ea56d839dd87a284

 

 


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