"The figures also suggest the recent mild deflation in housing prices is still under way." -Garry Shilson-Josling, AAP Economist
Nows not the time to jump on the debt gravy train to financial freedom through housing. It is however a good time to buy into the next bubble. Just look for a market that has accelerating credit growth. People always put their money somewhere ;-) Love capitalism and ignorance! Easyyyyy money! They would have to kill interest and credit to stop it and that's never ever ever going to happen. Best system ever to always make money.
No. of dwelling commitments, Owner occupied housing
Quote:
MARCH KEY POINTS
VALUE OF DWELLING COMMITMENTS
March 2012 compared with February 2012:
The trend estimate for the total value of dwelling finance commitments excluding alterations and additions fell 0.2%. Owner occupied housing commitments fell 0.5%, while investment housing commitments rose 0.4%. In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 0.5%.
NUMBER OF DWELLING COMMITMENTS
March 2012 compared with February 2012:
In trend terms, the number of commitments for owner occupied housing finance fell 0.4%. In trend terms, the number of commitments for the purchase of new dwellings fell 1.3% and the number of commitments for the purchase of established dwellings fell 0.6%, while the number of commitments for the construction of dwellings rose 1.1%. In seasonally adjusted terms, the number of commitments for owner occupied housing finance rose 0.3%. In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 16.4% in March 2012 from 17.2% in February 2012.
In some rare good news for the struggling housing market, home loans have posted a surprise rise.
Home loans rose 0.3 per cent in March, following a 2.5 per cent decline in February, the Australian Bureau of Statistics said today. Economists polled had predicted a 2 per cent fall for the month.
“It’s an okay result,” said JPMorgan senior economist Ben Jarman. “It’s telling us things weren’t too weak going into the RBA’s 50 basis cut which they delivered a couple weeks ago.”
Growth in Australia’s housing market has slowed over the past year with mixed signals about interest rates and the health of the economy keeping buyer activity subdued.
This month, the Reserve Bank cut interest rates by 50 basis points, with banks passing along the majority of the reduction to borrowers.
Auction clearance rates, a forward looking barometer of the market’s health, perked up over the past weekend. Melbourne’s auction clearance rate was a healthy 63 per cent last weekend, according to the Real Estate Institute of Victoria.
In Sydney it was 61.8 per cent, according to Fairfax-owned Australian Property Monitors.
Alicia Wood The Daily Telegraph May 15, 2012 12:00AM
THE number of first home buyers in NSW has plunged since the state government killed stamp duty concessions.
In figures released yesterday by the Australian Bureau of Statistics, the number of first home buyers in NSW has fallen almost 50 per cent in the three months since the concession was taken away.
In the budget last year, treasurer Mike Baird announced that from January, first home buyers purchasing existing homes would have to pay transfer title charges on properties under $600,000.
Exemptions now only apply to houses that are newly built or bought off the plan, about 20 per cent of the market.
The treasurer said the ABS results could not be attributed solely to the removal of the stamp duty concession.
"Although disappointing, today's result is not surprising as the weakening national economy continues to dampen confidence. Despite this, first home buyer approvals were still 7 per cent higher in the first quarter of this year than they were in the same quarter last year under state Labor," Mr Baird said.
"While recent cuts to interest rates should provide some relief and support to the housing market, the NSW government has acknowledged that housing supply remains a key challenge across the state and more needs to be done to support this important segment of our economy."
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