Economic update March 2013
The Australian housing market has recently seen the beginnings of some promising improvements.
New data from housing research specialists SQM Research found that, nationally, residential property listings fell slightly in January*.
Property listings acrossAustraliahave, on average, declined by three per cent since January 2012 which would suggest increased buyer activity.
“There are a number of signals now that the market is gaining some traction,” managing director of SQM Research, Louis Christopher, said.
“I think the interest rate cuts in 2012 are now working and that a housing recovery is occurring.”
This view was supported by RP Data’s latest Home Value Index which found that after a number of months of underwhelming valuations, home values now appear to be on the way to recovery**.
Since bottoming out in May 2012, dwelling values across the combined capital cities have improved by 3.1 per cent to January 2013.
RP Data’s research director, Tim Lawless, said it appears the housing market has started the year on a strong foot.
Finally, the surprise announcement of a September 14 election has been met with mixed responses from industry experts.
Some suggest it will create uncertainty in the market while others believe it’s a positive step towards market stability and greater certainty overall.
Mr Lawless, however, said the election date announcement will leave many buyers questioning the new taxation plans and the future of buyer incentives.
“A lot of investors will be wondering, are there going to be changes to the taxation regime if there is a change of government? Others will be wondering if there will be changes to the various homebuyer grants,” he said.
No matter what the future holds, one thing is certain: we can help you towards achieving your financial goals this year.
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