In times when Australians are opting for the inner-city experience over the idyllic life of the suburbia and choosing balconies instead of backyards, ‘Walkability’ has certainly become a prime criteria for selecting homes. Michael Yardney for the Property Update asserts that homes closer to amenities, transport and healthcare facilities will be among the more sought after.
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3 property market reports you cannot miss
As many as 3 Australian property market reports are worthy of an evaluation. An article on the ‘FX open’ website discusses them in great detail. Let us take a look.
Sydney dwelling prices – expensive or unaffordable?
Houses in Sydney might be a tad expensive but they are nowhere close to being unaffordable. Over a relatively long time period, such prices only mean a stable economy. The housing affordability data can be quite suggestive, based on the December quarter Reserve Bank of Australia bulletin (pages 13 to 22).
Vendor discounts drop considerably
Vendor discounts have dropped considerably providing sellers with many reasons to laugh. Additionally, the property prices are on a rise, interest rates are pretty stable and Australia is looking at a very high auction clearance phase lately. Charlotte Cossar for Realestate.com.au says that this might just be the time for you to put up your house on sale.
Vendor discounting is the difference between list price and sales price. Over the last year, this discount has come down from -7.2 to -6.4
When buyers do not seek very high discounts, it augurs well for the selling climate. With higher volume of sales transactions, stable cash rates and steady median prices (relatively high), things could not look better for the property market. In fact, the auction clearance rates are giving very strong signals too. Only about a month ago, the Prestige Market had posted near record figures for Sydney. You can read the full article here.
House prices to remain steady in near future says HIA
Australian property market is going through one of its more stable phases. It is running close to long-term moving averages and thus it may not witness large price swings anytime soon, says Larry Schlesinger in an article for the Property Observer. Australia is well-placed on the stability slope because it has its basics in the right place. The prime determinants- house prices- earnings- mortgage repayments form a healthy graph.
Owing to weak volumes of transaction, house prices have not got the necessary momentum in the past but things have changed lately. Already, the residential constructors are laughing all the way to the bank, given the steady price movement.
Australian housing nowhere close to a bust
The Australian housing bubble is not bursting anytime soon. The prices may be high but they are so only because the cost of living is high says Gary Thomas, President of US National Realtors association. Larry Schlesinger while reporting for the Property Observer writes an interesting article that sheds light on how the US real Estate is looking to come through after the Sub Prime crisis years. Property legend like Gary Thomas feels that the difference in pricing is only because of differences in average income, liquidity and subsequent purchasing power.
Gary Thomas does not speak through his hat. With over 35 years of experience in US Realty and managing a pan-Southern California firm called Evergreen Realty; he certainly knows a thing or two about the statements he makes. The prices of homes in US (inclusive of Foreclosure and Short Sales) have come up by 9.7% in the last one year. There are clear indications of property resurgence in California, Florida and Arizona. In fact, the states that had suffered most are coming up most strongly (says something about the US resilience- is it not their style since Lincoln’s time?)
While prices are increasing steadily, they are not exactly skyrocketing- this is especially because mortgage loans are not too easily available (Sub Prime days have resulted in extremely strict lending policies). Gary Thomas uses a beautiful satire when he says that lenders in US sometimes treat borrowers as those under trial for ‘inquisition”. All said, there is enough reason feels Thomas for Australia to take a keen interest in its near-boom property days without fearing a bust.
Does the Australian housing market remind you of days that led to the US mortgage crisis?
