The fall in the number of home loan approvals continue to accelerate with a 7.9 percent fall in January, the biggest fall for a decade. This follows a revised 5.1 per cent drop in December. As we highlighted in last month’s post, No ‘pent up’ demand for Mortgage Approvals, it …
Despite the Global Financial Crisis, an event triggered by debt, the Reserve Bank of Australia figures show Australian Households have punched through the big $1 trillion dollar mark in home mortgages. This is almost 15 times more than 20 years ago. Loans to Investors to purchase houses have gone up …
With the onset of an election, the government has seized at data from the Australian Bureau of Statistics showing Australia’s unemployment rate is trending down from 5.5 percent in December to 5.3 percent in January. But while more Australian’s are in work, is the result really as rosy as the …
Demand for mortgages has dropped for the third consecutive month in December, with approvals falling a seasonally adjusted 5.5 per cent according to official ABS data. This follows falls in November of 6.1 per cent and October of 2.85 per cent and brings the quarter fall to 13.74 per cent. …
Large falls in mortgage applications is surfacing among mortgage brokers suggesting not all is well in the housing market. The Loan Market Group has indicated home loan approvals have fallen 40 per cent from its peak in 2009. LMG has recorded its slowest month since January 2006. But falls of …
Sales of existing homes in the United States fell 16.7 per cent in the month of December, the biggest monthly drop in 40 years. American First Home Buyers were eligible for a Tax Credit of up to $8,000 which was due to expire on the 30th November 2009, however Congress …
The rental crisis has ended with property developers flooding the market with apartments they have been unable to sell and renters finding cheaper accommodation with the knowledge times are hard and they are worried about their jobs. The number of vacant properties in Melbourne, Sydney and Brisbane has returned close …
In what has been a shock to brokers, Westpac has written to mortgage brokers informing them RAMS branded products will no longer be distributed to third parties, and only marketed to its 92 franchised stores. The Herald Sun writes “WESTPAC’S funding problems have forced it to shut down a key …
The Commonwealth Bank of Australia’s Wealth Management Provider, Colonial First State has been forced to freeze withdrawals from a $850 million mortgage income fund after an increase in bad debts. Colonial has $2.6 billion in funds invested in mortgages. » Colonial Freezes A$850 Million Mortgage Fund, Herald Says – Bloomberg, …
Yesterday the Australian Prudential Regulation Authority (APRA) released a discussion paper detailing the proposed Financial Claims Scheme (FCS). The paper details procedures ensuring when an Australian Deposit taking Institution (ADI) goes insolvent, there is adequate information to enable depositors to be paid promptly. This includes how end of day balances …
Figures from the Reserve Bank of Australia today show annual credit growth has slowed to a 17 year low in November. Credit growth for the 12 months to November 2009 was just 0.8%. Business credit contributed the most to the fall, falling 8.2% in the past year. While many business …
Australians are trying to starve off recession by spending, something which can only end in disaster as the debt continues to pile up. Figures from the Reserve Bank of Australia show Australians now have more household debt than the countries’ GDP. Personal Debt is now 100.4 per cent of Australia’s …
Over night, the Federal Deposit Insurance Corporation (FDIC) shut down a further 7 United State banks bringing the total this year to 140. This number of failures is the most since 1992 during the grips of the savings and loans crisis. Most of the banks have become a victim of …
With many Australian’s relying on wage growth to fund housing expenses growing at an even faster pace, the future is not looking rosy for many businesses. The Australian Corporate Health Index today shows more than 70 per cent of 200 listed companies outside of the financial services sector went backwards …
While much of the world is coming to terms with falling housing prices brought on by crippling debt and the inability to service it, Australia’s size of new mortgages has hit a new record. Fueled by emergency low interest rates, the average home loan brokered in November was $367,000 up …
Australia deputy governor Ric Battellino has stolen the limelight today with comments that we have only just entered a new upswing and that our 18 years of economic expansion has many more years to run. “It is now 18 years since Australia has experienced a negative in year-ended GDP growth, …
The Sydney Morning Herald reports : Households will begin to feel the impact of more interest rate rises, after years of racking up more debt, a report shows today. The Melbourne Institute Bulletin of Economic Trends for November flagged the increased likelihood of a Reserve Bank rate rise in December …
The ABC reports on a Housing Industry Association (HIA) report revealing this year marks the seventh straight year of weakness in housing starts, with Australia experiencing the longest slump in new home building in its post-war history. The HIA argues new building is being crippled by bottlenecks and that it …
The Age’s Tom Ormonde today wrote an article about the housing bubble that on one dares burst. THE phrase ”safe as houses” was always ridiculous, and not just because it’s a cliche. Bricks, mortar and gaudy imitation period features can be a good investment, but frequently aren’t, particularly when procured …
The next housing boom has begun, outstripping wages and further reducing household spending, which ultimately will put further pressure on unemployment as purse strings continue to tighten. Economists had predicted house prices would rise 3% for this quarter, but ABS data released today show a much larger boom in house …
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