With fears of a credit crunch coming to haunt the economy, the Australian All Ords fell 311 points or 5.4% during trade yesterday, only to make a good recovery in the afternoon. With records for the biggest fall since Sept 11th broken several times in the past month, yesterdays fall …
These days it seems everyday is another big fall caused by sub prime worries and the impending credit crunch. The Australian All Ordinaries Index fell another 2.75% or 181 points today to 5,801, lead by big falls in the US markets overnight. The Dow Jones fell 207.6 points to 13,028 …
THE Federal Reserve Chairman, Ben Bernanke, was wrong.So were the US Treasury Secretary, Henry Paulson, and the chief executive officer of Merrill Lynch & Co, Stanley O’Neal. The subprime mortgage industry’s problems were contained, they all said. It turns out that the turmoil was contagious. » All the experts were …
The Australian Stock Market took the lead from Global Markets and with the S&P200 plunging 3.7%, the biggest one day fall since 7/11. “Cash is king at present, with the market continuing to respond very directly to offshore volatility as the fall-out from sub-prime credit crisis spreads,” MFS chief executive …
In the lead up to the last federal election, one of Prime Minister Howard’s slogans was Keeping Interest Rates low. Since then rates have risen 5 times. Today the RBA increased interest rates 0.25 per cent to 6.50. But does Interest Rates really matter, or is the actual size of …
What will come as no surprise to many, the Urban Development Institute of Australia says a report it just released shows housing affordability has worsened dramatically in recent years. It charts the affordability in 70 centers in Australia. In 2001, 96 percent of those centres were considered affordable, today it …
» Home sales slump in June – The Australian, 30th July 2007.
WHO’D have guessed it? Housing is the reason global stockmarkets are suddenly looking sickly, housing is the curse of the credit system, and it just might be the key to this year’s federal election. » Australia’s real crunch in housing yet to come – The Age, 29th July 2009
» Middle earners ‘squeezed’ as house prices jump – ABC News, 28th July 2007.
The HIA has called on the Federal and State governments to set up a rental assistance fund. It predicts the number of Australians under rental stress will soar in the next three years to 750,000. Rental stress is defined as handing over more than 30 percent of their income to …
The Sunday Telegraph has printed an article today suggesting Sydney property is now priced out of reach of 75% of families. With the medium house price in Sydney now $521,100, they indicate when a 10% deposit has been put down, you need an annual household income of $145,412. From recent …
Don’t worry about peak oil, now a new house price surge is predicted which in the words of property analyst, Michael McNamara, will bring “Peak Debt”, when mortgage repayments outstrip disposable income. Australian Property Monitors predicts that in the next decade many in the mortgage belt of “average Australia” will …
THE DREAM of debt-free home ownership is slipping further from reach for the typical Australian family, as rising mortgages outpace growth in household earnings. Census figures were released today giving a snapshot of 2006 compared to 1996. In 2006, 33% of homes were fully owned. Ten years prior, 41% of …
The Advertiser today reports on a 34 year study showing that the rise and fall of the economy follows the housing market by 12 to 24 months. National Australia Bank chief economist Alan Oster said this has a wide economic impact, as people decide to either spend more or spend …
It looks like our real estate experts are trying to pump the markets again. In Adelaide, readers woke to an article in yesterday’s Sunday Mail, House Prices Set to Boom : HOUSE prices are set to jump up to 15 per cent – or an average $45,000 – in the …
The UK daily mail reports Investment Bank ABN Amro has warned of housing slump on a global scale due to soaring borrowing costs. Families have taken on ‘unsustainably large’ mortgages, leaving them vulnerable to the sharp increases in bond yields and official interest rates seen in recent weeks, wrote economist …
More data out today about the housing crisis, this time in Queensland. Housing repossessions in Queensland for the last two years is up 88%, while the number of mortgage relief loans, an interest-free loan of up to $12,000, is up 166% in the past year. Labor treasury spokesman Wayne Swan …
According to accounts filed with ASIC, Australia’s two big mortgage insurers, Genworth and PMI had a large surge in claims by from home lenders. Lender’s mortgage insurance (LMI) is normally required for home owners borrowing over 80% of the LVR. Should the home owner default on the loan, the insurer …
The Australian Property Monitors released figures today indicating rents for houses have increased by as much as 15 percent in the last year. APM reported the biggest growth was in Brisbane while rents actually got cheaper in Darwin. “Mr McNamara says it is definitely a landlord’s market. “We do know …
Following the release of housing affordability figures yesterday, the Housing Industry Association spokesperson Chris Lamont commented, “If you were to see interest rates increase by one or two per cent you’d see pandemonium across the market.” This is quite ironic, as earlier in the year the HIA was endorsing a …
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