20. April 2015 18:14
Interest rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding, “An interest rate definition”. Will interest rate really helps to fuel the housing bubble? Will it encourages people to spend money on home improvements? Is it the health of the economy?
Nowadays, many are pessimist and many are expected the property in Australia but has not yet. House price is slightly high and it doesn’t mean that we have housing bubble because of the high prices. Interest rate is already low and it can cause inflation and make business loans more affordable.
According to Greg Jericho, “Another interest rate cut will fuel a housing bubble in danger of bursting.” When interest rate is high, it means fewer people and business can afford to borrow. It also reduces the capital required to business expansion. When interest rate cut, it will boost the economy and attracts investors. When the interest rate cut happens, it can cause recession and it cures inflation.
26. September 2014 18:30
According to REIWA’s David Airey, “There has been more of a demand of properties and less supply in these particular suburbs and this is what is causing the houses value to be raised quite significantly.”
In Western Australia particularly in Perth, Perth house prices increased 3.5% for a median price of $512,500. Consumer confidence is heading the right direction that dwells the buying and selling conditions. Due to expected growth of GDP, Housing Industry attributed figures to housing building boom.
Property market become softens due to low demand and has too much supply. But still the growth continues due to reasonable rate that’s leads positive outlook. New home building put in a strong performance and helps the Property market continues to goes up. Optimistic discourse dominated the growth and it promptly change because of low and suitable rates.
29. July 2014 18:43
According to REIW Deputy President Hayden Groves, “As a result of that its dragged the median house price down across the Perth Metropolitan area, mainly because the composition of the market has changed with a lot more lower priced properties selling during this quarter.” This is from REIWA that’s shows Perth’s median price has dropped. The drops driven by an increase in rental properties and low interest rate plays a role in housing market. Vacancy rate has increased because of having more properties. If the rental growth will continue to perform well, it will help the outperforming housing activity in the wider economy.
2. July 2014 23:14
Last May, home prices had fallen by 1.9% but June showed house prices a 1.4% increase. Across all the capital cities in June, Australian home prices rebounded and recouping the decline last May. The latest home value data shows prices rebounded in June but appear to be part their biggest gains.
According to RP Data’s Research Director Tim Lawless, “Even though that leaves capital city prices up 10.1% for the financial year. He thinks the biggest gains are now past, especially in Australia’s two biggest markets.” Sydney and Melbourne boosted the biggest gains in June but home auction remained firm. Houses growth trend seems to moderate and more sustainable level. Interest low rates and home construction are possible factors that support the economy.
1. July 2014 18:20
In Western Australia Economy, the fundamental factor that makes this city become competitive is mining, agriculture and industrial development. These can make encourage and attract investors and migrants to invest money. In all Western Australia Perth metropolitan areas have been revealed as the quickest-selling in the country.
According to a New Analysis revealing the fastest-selling markets in the country, “Houses are being snapped up most quickly in Western Australia and South Wales.” Perth’s Bassendean is the fastest growing council in the country and most active market for units. Gosnells, Cannington, Victoria Park and Belmont made into the top 5 also as the fastest selling Perth suburbs. Even the prices in Perth are rising, but still maintain the pressure in the property market. It keeps promoting and building new house that contribute the growth and development of the areas.
23. June 2014 18:27
According to Morgan Stanley in the Sydney Morning Herald, “Without further interest rate cuts the current housing cycle is in danger of gradually fading.” House prices have suffered because of the low interest rate and drop of consumer confidence. But we cannot conclude yet because some of seasonal factors may play a huge role in order to rebalance the market. Although, housing market conditions have softened last May & June but we can see some signs that housing market is approaching the growth cycle. Will housing become affordable? F it will continue to fall, many will suffer and we won’t allow that to happen. Many factors will help the housing market to boom.
26. May 2014 18:05
According to the RP Data – Rismark measure of house values, “It is showing values in Perth down 1.4% this month.” Based on the report that Perth house prices continue to fall because of the interest rate on hold. The investor activity is still rising and consumer confidence is increasing.
According to AMP Capital Chief Economist Shane Oliver, “It may be too early to talk about rate cuts but an extended period without any change was increasingly likely.” Interest rate may change some time and it will affect the flows of housing market. Behind the surge in home prices, rents are continuing to fall.
28. April 2014 17:40
Based on the RBA report, “Stronger activity in the housing market, particularly by investors, can be a signal of speculative demand, which can exacerbate property price cycles and encourage unrealistic expectations of future housing price growth among property purchases.”
Nowadays, interest rates are at record low and it is competing for banks. The house prices will not continue to rise forever because lots of factors may change although, interest rate remains on hold. Economists are trying to lift the Australian dollar lower which dwells the market more competitive. Migrants and foreign investors are dwelling up the property prices. We need to maintain the consumer confidence high and definitely the banking system continued to perform strong. House prices may grow or become affordable when unrealistic expectations come.
9. April 2014 18:28
According to the Real Estate Institute of Western Australia, “Perth’s Median house price climbed to $550,000 in March 2014, up from $ 546, 000 in December 2013. REIWA’s figures also showed the market had cooled in the March quarter, with Institute President David Airey describing the last three months as “choppy.”
Because of the low interest rates, housing market is accumulating. Perth is one of the cities perform well. Housing market continues to rise because of the affordability and provide positive activity. Perth housing market continues to record solid and the best performer. Joondalup and Wanneroo lead the heads up.
21. March 2014 18:23
There are a lot of factors driven in house price growth. The economy, rising demand, scarcity and confidence are factors that influence the property market. Is the house price a good start to pause?
According to RP Data Head if Research Tim Lawless, “ The likelihood is that the weak reading for February is an adjustment from the strong readings in December & January, rather than the beginning of a flat to negative growth phase across the macro level housing market.” Pause in house price is not a bad thing; instead this is the adjustment of property market. All factors work together in reaching the market peak.