by John Edwards, Founder of Residex Pty Ltd and Consultant to Onthehouse.com.au.
It was only about 18 months ago that the housing market was full of gloomy news. Many of the worst performing areas in Australia were on the Gold Coast where there was a significant oversupply of stock and values had fallen by amounts not seen since the Great Depression.
Southport comes to … Continue Reading »
Posted on 24th September, 2013 in Market talks, Real Estate News by
Prior to last week, Westpac’s chief economist Bill Evans was going it alone against the views of 20 out of 28 economists surveyed by Bloomberg that the official RBA cash rate would drop another 25 points – however in light of recent data Westpac has revised its forecast – predicting that rates will remain unchanged until June this year.
The readjustments were made on the back … Continue Reading »
Posted on 4th March, 2013 in Market talks, Real Estate News by
By Gerard Minack, head of global developed market strategy at Morgan Stanley.May 2, 2012
The Reserve Bank will make further cuts to the cash rate in 2012, and another 75 basis points seems plausible.
The RBA cut its cash rate target by 50 basis points to 3.75%. Morgan Stanley (and consensus) had expected a 25bp cut. It seems the key to the larger-than-expected cut was the larger-than-expected decline in inflation, reported last week.
The RBA also acknowledged that economic conditions … Continue Reading »
Posted on 2nd May, 2012 in Finance, Market talks, Real Estate News, Uncategorized by
ANZ has become the first of the big four banks to cut interest rates in the wake of the Reserve Bank’s decision on Tuesday, matching the 25 basis-point reduction.
After two days of silence in which the major banks have been resoundly criticised for holding off, ANZ said today that given the economic conditions facing consumers that it should pass on the full cut.
ANZ’s cut will … Continue Reading »
Posted on 8th December, 2011 in Finance by
In raw terms, capital city home values declined by -0.2% in October (-0.5% seasonally adjusted) prior to the RBA’s decision to cut interest rates. On a raw and seasonally-adjusted basis, the decline in capital city home values in 2011 has been 2.8% and 4.0%, respectively. Adding in gross rents, total housing returns are up +0.9% … Continue Reading »
Posted on 30th November, 2011 in Landlord News by
This past week, the Reserve Bank gave mortgage holders the relief that Yellow Brick Road has been calling for over the past six months. It’s a welcome reprieve and one that is long overdue. But in our minds, the decision is less about reducing rates and more about bringing back the confidence that so many Australians had lost since last Melbourne Cup Day’s rate hike … Continue Reading »
Posted on 4th November, 2011 in Finance by
There was mixed news for property owners this week.
On Tuesday the Reserve Bank board delivered some good news to home owners leaving interest rates unchanged at 4.75 per cent. While rates have now been consistent since November 2010 the market continues to bet the next move in interest rates will be down. Markets are now factoring in more than 1.25 percentage points of cuts in … Continue Reading »
Posted on 8th September, 2011 in Finance, Market talks, Real Estate News by
Australia’s monetary policy uses a central bank to raise and lower interest rates in order to influence inflation.
When inflation is over 3 per cent, the Reserve Bank raises interest rates to stop the economy overheating and when inflation is too low they lower interest rates to stimulate the economy.
By keeping inflation within 2 and 3 per cent, they promote stability which promotes employment.
So, lately … Continue Reading »
Posted on 26th August, 2011 in Finance, Market talks, Real Estate News by
The Reserve Bank should now rule out any increase in interest rates in the near future, following the 1.2% seasonally adjusted drop in the March quarter gross domestic product, according to the property development industry group Urban Taskforce.
Urban Taskforce Chief Executive Aaron Gadiel said the Reserve Bank needs to urgently change tack.
“The figures shows that public sector economic forecasters had underestimated the impact of … Continue Reading »
Posted on 6th June, 2011 in Real Estate News, Uncategorized by
From a big picture viewpoint, this Budget did not fundamentally change existing fiscal policysettings.
The Budget in 2010/11 and 2011/12 has taken a significant hit from the combination of a lowermining tax take (as depreciation deductions mute taxable profits), carry forward losses from theGFC, a multi-speed (or patchwork) economy and the cost of natural disasters. Thereafter we seea moderate tightening in the fiscal stance – most notable in 2012/13 (see Medium Term FiscalContext).
A key focus of … Continue Reading »
Posted on 11th May, 2011 in Market talks, Real Estate News by