According to Christopher Joye, Director of Property Research for Rismark, “For Australia’s capital city and regional markets, this was the single best monthly result since December 2010, and augurs well for housing activity during the first quarter of 2012, which are we project will rebound solidly.” The house price rise will urge some hope that housing market is stabilizing and have mild resurgence in 2012 in which the interest rates dropped this previous month and have continuous income supported by the mining boom.
“Despite warnings from the major banks that funding pressured meant they will have trouble passing in all the RBA”s rate cuts to customers, they in fact have done that, “Mr. Joye said. The mortgage market in Australia lead by the big four banks in which they needs to become competitive and have sustainable flow of credits. The RP Data-Rismark figures that capital city home value index rose by 0.1% November from October and its first increase since 2010. Because of the full employment, it very difficult to walk away from mortgage because of the solid income growth and regulations. Global investors view considered that Australia’s economy is a strong economy but they cite that property market is the weakness.