In an article for the website Property Update, Cameron Kusher writes that in purely ‘nominal’ terms, home values have risen by 9.3% leading up to September 2014. In ‘real’, inflation-adjusted terms, this growth has been 6.8%. Inflation is quite an integral part of the discussion. Let us find out a little about this significant aspect.
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Will Value Growth Stagnate From Here?
An article on the website Your Investment Property sheds light on the recent spate of house price growth. The combined capital city values have risen by 1% on last count. The state-by-state trend though suggests something quite different.
Cash Rate To Stay Where It Is
In an article for the website Property Update, Michael Yardney says that the cash rate is going to stay where it is for sometime but an ascension in rates is on the cards next year and this will be followed by a downward cycle, perhaps as soon as 2017.
The experts are divided in their opinion; some of them are convinced that a rate hike is due in the first quarter of 2015 while there are others who think it will stay sessile for another couple of years.
The position of the Australian dollar and unemployment levels do not create much ground for a rate hike just as yet but such conditions which warrant a rate rise will present themselves shortly, feel many experts.
You can read the original article here.
A Shift in Demographic Trends
There are many great ways in which the property market may get affected due to the net interstate migration being witnessed of late. Pete Wargent, in an article for the website Property Update, talks about certain demographic trends.
US Era of Quantitative Easing Soon to Be Over
In an article for the website Property Update, Michael Yardney talks about the proposed end of US’s increased reliance on Quantitative Easing (QE). The decision is backed by US’s assertion that its economy is now on a more surefooted territory and it may not require pumping in money through unconventional financial programs.
Fixed Rate Home Loans on Ascendance
An article on the website Your Investment Property talks about how borrowers are intent on freezing their interest rates because of the low mortgage rate climate. As a result, fixed rate home loans have been on the rise and they have made up for 26.64% of total loans written in the month of October. This coincides with an eight month high.
Of course, the trend can also be put down to the fierce competition between Australian lenders. They are coming out with their best baits. As a natural conclusion, this is allowing borrowers to have some really good fixed rate bargains.
On the other end of the spectrum, variable loans are doing as well as ever, despite a near 1% drop when last counted.
You can read the original article here.
