No Picture
Australian Housing

End of boost to hit mortgage market

The Sydney Morning Herald reports a forecoming $14 billion decline in mortgages written over the next 12 months as the first home buyer frenzy gets watered down. The value of mortgages written fell $3 billion or 6 per cent in the September quarter as the full value of the boost

No Picture
China

China gets set to pop speculative housing bubble in 2010

In what could be seen as a splitting image of Australia, young Chinese is struggling to get into a housing market fueled by speculation. The AFP reports “The boom has been bolstered by easy bank loans, tax breaks and a lower down payment threshold, introduced by the government in the

No Picture
Australian Economy

Australian average mortgage size ballons to new heights

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

No Picture
Australian Housing

Australia : Home of the McMansion

The size of the Australian home has overtaken the U.S. to become the biggest in the world. The average size of the new Australian home is now 215 square meters, up 10% over the past decade. In contrast as the U.S. comes to grips with the worst recession since the

No Picture
Australian Housing

New home sales in downward spiral as stimulus measures wears off

New home sales fell for the 2nd month in Australia as the effects of the unprecedented financial stimulus wears off. The Housing Industry Association reported today sales of new homes fell 6.9 percent in October, following a fall of 4.3 percent in the month previous. ยป New home sales retreat:

No Picture
Australian Housing

First Home Buyers flee market in droves

The Sydney Morning Herald reports there were only 2626 first home buyers in NSW in the month of October after the First Home Buyers Boost was slashed to $3,500. This is a fall of 57% from the previous month where 6079 buyers made a rush to ensure they picked up

No Picture
Australian Economy

Australia’s 18 years of economic expansion will continue for years to come

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,

No Picture
Australian Housing

Home deposit rules could stem price bubble

Amid fears another house price bubble is brewing in Australia, RBA Assistant Governor Guy Debelle has entered into debate with the suggestion of regulating the size of deposits home buyers must provide banks, in a bid to prevent credit fuelled asset bubbles. Back in September the International Monetary Fund endorsed

No Picture
Australian Economy

Households set to feel debt squeeze

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

No Picture
Australian Economy

Worst house building slump since WW II

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

No Picture
Australian Economy

Housing the bubble that no one dares burst

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

No Picture
Australian Economy

Next boom in house prices continue to outpace wages

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

No Picture
Australian Economy

Price limits set for first home buyers

As part of the “winding back” of the housing stimulus measures, Housing Minister Tanya Plibersek has announced there will be caps on the amount first home buyers can spend on their first pad while still being eligible for the $7,000 first home buyers grant (FHBG). From the 31st of December,

No Picture
Australian Economy

Hurry : Only days to go to get a big mortgage

The Sunday Telegraph reports banks are urging first home buyers to take out mortgage applications prior to the Melbourne Cup rate rise next week, so they can secure the biggest possible loans. A mortgage advisor at NAB’s Surry Hills branch told a Sunday Telegraph Journalist “you will need to hurry

No Picture
Australian Economy

Australian Housing Bubble hits new Heights

The Australian housing bubble, one of the last in the world to pop is bucking world trends to hit new heights. Today, The Sydney Daily Telegraph reports data from Residex suggesting Sydney’s median house price is now $610,500 in September, up $11,000 for the month after breaking through the $600,000

No Picture
Australian Economy

Strong Jobs locks in November Rates Rise

Unemployment in Australia has bucked the trend, coming in at a better than expected 5.7%. The Aggregate monthly hours worked increased 13.4 million hours to 1,522.4 million hours, after 13 months of declines. The strength of jobs, comes just days after the RBA increased the official cash rate to 3.25%.

No Picture
Australian Economy

Cash rate rises to 3.25%

The RBA today has increased the official cash rate by 25 basis points to 3.25% on the back of a strong Australian economy. Interest rates have been at emergency 3.00% levels since April. Today’s rise makes Australia the first developed nation to increase rates since the start of the GFC.

No Picture
United States Economy

U.S. Youth Unemployment hits 53.4%

While U.S. unemployment has hit a 26 year high of 9.8%, spare a thought for young Americans aged between 16 and 24 who are not studying – more than half are unemployed. The New York Times reports for this group, getting a job and moving out of the family home