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Archive for the ‘House Prices’ Category

RBA says No Housing Crisis Here

Posted by Tamara McDowell on June 9, 2010

Speaking on recent developments in the housing market the RBA’s Head of Financial Stability, Luci Ellis recently stated that any housing collapse like that seen in the US at the start of the global financial crisis is unlikely to occur in Australia.

Ellis notes that if the current benign picture of the financing of the housing market is to continue it is crucial that lending standards in the mortgage market remain prudent.

“Past experience has clearly shown that in the long run, you don’t improve housing affordability by easing lending standards. That just gets capitalised in the price.

“In fact, easing mortgage lending standards too far can be outright damaging to long-run affordability. This has been amply demonstrated in the recent United States housing meltdown,” Ellis said.

In Australia, lending standards never eased that far, and conditions didn’t get that grim.

Ellis notes that first-home buyers have long faced greater risk than more established home owners who have more equity in their homes. She states that there appears to have not been a drop in lending standards to first-time buyers, even when the First Home Owners Boost was in effect.

“Indeed, across the mortgage market as a whole, lending standards are a little tighter than they were a couple of years ago,” says Ellis.

In summary Ellis said that the global economic slump may still have a way to go and with consumer confidence still low financial conditions could remain tight for several years.

Mortgage holders should expect then, that current lending criteria will remain in force – which generally means borrowers will be required to provide a minimum deposit of  5 per cent as well as provide evidence that genuine savings forms part of that deposit.

Borrowers who require assistance finding a home loan, or who are looking for a low deposit option, should talk to a good mortgage broker for assistance.

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Posted in Bank & Lender News, House Prices, Interest Rates, Loans, Mortgage Broker Service, Real Estate News | Tagged: , , , , , , , , | Leave a Comment »

Perth median to break through $500,000

Posted by Tamara McDowell on April 6, 2010

 

The resources juggernaut is fuelling the next Perth property boom, with the city’s housing markets unable to absorb WA’s continuing massive population growth.

According to the Real Estate Institute of WA (REIWA), growing confidence has led to an increase in listings as well as sales. At the end of March, there were 12,700 properties on the market – an increase of 22% from December.

“The Perth median house price is very likely to top $500,000 for the first time when official figures are released in early May,” said REIWA president Alan Bourke.

The busiest sector during the March quarter was the $500–600,000 range. “Here, the proportion of sales jumped 2.5 percentage points to represent about 18% of the market,” Bourke said. “The other price range to show increased activity for the quarter was in the $750,000 to $1m range.”

By contrast, sales of homes under $400,000 are beginning to subside.

Posted in House Prices, Investors, Real Estate News | Tagged: , , , , , | Leave a Comment »

Buyers opt for higher priced properties as confidence returns

Posted by Tamara McDowell on March 29, 2010

A growing number of property buyers are snapping up more expensive properties in capital cities amid predictions that value will double over the next 10 years.

The latest data from Loan Market showed mortgage demand from borrowers buying top end properties jumped by 30% over the past 12 months. The report also found a dramatic increase in borrowers seeking loans in excess of $800,000 and those who are borrowing more than $3 million.

“There is strong evidence that the prestige property market is on the move and people are on the hunt for homes worth more than $1 million,” said Dean Rushton, Loan Market chief operating officer. Read the rest of this entry »

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