Thu, 2009-03-26 13:56 — administrator
Where are house prices in Australia headed?
We still hear many observers of the popular media expecting house prices in Australia to fall.
- The recently released Reserve Bank’s Financial Stability Review has highlighted the strong position of Australia’s banking system, saying it is well placed to weather current challenges.
- The Reserve Bank has highlight the increased conservatism of households and businesses. Credit is freely available but consumers and businesses are more reluctant to take on debt.
- The Reserve Bank notes the “substantial underlying excess demand for housing” as a key factor supporting house prices.
Substantial underlying excess demand for housing is a key point here.
Property pricing is always driven by demand. There has been a major reduction in property development, especially in Sydney over recent times.
I heard a great term at a seminar some time ago. "By the time most people hear on the news and read in newspapers that there is an increase in property prices occuring most opportunity to capitalise on the market is already well and truly in the rear view mirror"
The full Reserve Bank Financial Stability Review is available for download and the Commonwealth Bank Commsec comment on the review is available for download below.
If you are considering entering the property market for the first time or even preparing for a repeat purchase why not be prepared?
It costs nothing more than a little of your time to organise a home loan pre-approval.
You may even need to obtain a investment home loan pre-approaval which includes the refinance of existing home loans to raise equity for the intended purchase.
A report on the top suburbs for property growth in NSW was sent to me today. These are 12 month growth figures on the median price.
- + 49.8%
- + 47.4%
- + 44.6%
- + 37.9%
- + 37.1 %
- + 35.7%
- + 34.1%
- + 34.0%
- + 33.2%
- + 29.3%
Should we wait for property prices to fall a little more yet?