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Victorian first home buyers drive up sales; Or was that buyers anticipated the central bank would lower borrowing costs, a private report showed.
Topic Started: 29 May 2012, 01:28 PM (802 Views)
WestAussie
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Victorian first home buyers drive up sales
May 29, 2012 - 11:27AM

First home buyers soar Loan applications from first home buyers increased 20% in the first three months of 2012. A surge of house buyers trying to beat the axing of the first home owner bonus in Victoria has lifted new home sales from their record lows.

New home sales jumped nationally by 6.9 per cent in April, seasonally-adjusted, after sinking to their worst levels in a decade in March, a Housing Industry Association survey of the country’s largest 100 builders shows.

The biggest boost to April sales came out of Victoria, where they surged 17.2 per cent after the Baillieu government’s recent budget axed handouts to first home buyers. These gave them up to $19,500 in rebates if they purchased a new dwelling under $600,000.

The cuts have sparked a rush of new home buyers in Melbourne’s suburban housing estates and apartment market seeking to claim the rebate before the June 30 cut-off date.

Read more: http://www.theage.com.au/business/property/victorian-first-home-buyers-drive-up-sales-20120529-1zg7g.html
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WestAussie
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Australian New-Home Sales Surge 6.9% In April, Most In Two Years
By Michael Heath - May 29, 2012 9:00 AM GMT+0800

Australian sales of newly built homes surged in April by the most in more than two years as buyers anticipated the central bank would lower borrowing costs, a private report showed.
Sales rose 6.9 percent in April to 5,816 from a month earlier, when they dropped 9.4 percent to a record low, the Canberra-based Housing Industry Association said, citing a survey of the nation’s 100 largest builders. Detached house sales advanced 6.4 percent, while apartments surged by 10.3 percent, it said.

Reserve Bank of Australia Governor Glenn Stevens unexpectedly cut the benchmark interest rate May 1 by half a percentage point to 3.75 percent, the deepest reduction in three years. Stevens reduced the overnight cash rate target by a quarter point each in November and December to buttress the housing market, encourage hiring and boost consumer confidence.

“Even with this latest improvement, the aggregate volume of both new home sales and local government building approvals imply that in the absence of a rapid and sustained recovery, national new-home building is heading to a recessionary level in 2012,” Harley Dale, HIA chief economist, said in a statement. “Further interest rate cuts are required and the Reserve Bank should just get on with the job.”
Australian house prices declined in the three months through March in the longest losing streak in at least a decade.

An index measuring prices for established houses in eight major cities dropped 1.1 percent last quarter from the previous three months, when it fell a revised 0.7 percent, the Australian Bureau of Statistics said in a May 1 report. House and apartment prices slumped 4.5 percent in the eight cities in April from a year earlier, according to real estate researchers RP Data and Rismark International.

Aussie new home sales
Edited by WestAussie, 29 May 2012, 01:29 PM.
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WestAussie
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So..... since every man and his dog is entitled to his opinion I say it was magic! Harry Potter and co are flying around making people buy anything they see. And don't forget the dark wizards. Oh yes.

I wish I had time to find it, but there was one person who posted on the forums that gave a hint like 6 months ago that we would see a upswing just before end of June because there was something in the works along the lines of more grants getting cut. Then they said we would see a loss of first home buyers for a while that would be worse than what happened when the swap was made for only newly built homes to get grants and a decline in prices for years to come as the grant is 'filtered out' of current prices. Dammit really really really wish I could find the post.
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peter fraser
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There is a last minute surge in new home sales in Victoria to get the boost offered by the state government that s
tops 30/06/2012 - but it isn't pushing up prices and I don't think it will, although sales volumes will be higher.

Brisbane and Sydney have been edging higher in recent days, but the rises have been insignificant and only reverse recent falls.

I wouldn't get excited yet - maybe if we see a 0.50% fall in June that is mostly passed on we will see a little action, but really the market is pretty slow.



Any expressed market opinion is my own and is not to be taken as financial advice
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miw
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peter fraser
29 May 2012, 01:44 PM
There is a last minute surge in new home sales in Victoria to get the boost offered by the state government that stops 30/06/2012 - but it isn't pushing up prices and I don't think it will, although sales volumes will be higher.

Brisbane and Sydney have been edging higher in recent days, but the rises have been insignificant and only reverse recent falls.

I wouldn't get excited yet - maybe if we see a 0.50% fall in June that is mostly passed on we will see a little action, but really the market is pretty slow.


And Brisbane is probably going to slow down a bit for a month or so, because Can-Do Campbell has introduced legislation to give the stamp duty concession back to owner-occupiers in Qld from July 1. (FHBs already get stamp duty exemption up to home value of $500k I think?)

The truth will set you free. But first, it will piss you off.
--Gloria Steinem
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peter fraser
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miw
29 May 2012, 03:09 PM
peter fraser
29 May 2012, 01:44 PM
There is a last minute surge in new home sales in Victoria to get the boost offered by the state government that stops 30/06/2012 - but it isn't pushing up prices and I don't think it will, although sales volumes will be higher.

Brisbane and Sydney have been edging higher in recent days, but the rises have been insignificant and only reverse recent falls.

I wouldn't get excited yet - maybe if we see a 0.50% fall in June that is mostly passed on we will see a little action, but really the market is pretty slow.


And Brisbane is probably going to slow down a bit for a month or so, because Can-Do Campbell has introduced legislation to give the stamp duty concession back to owner-occupiers in Qld from July 1. (FHBs already get stamp duty exemption up to home value of $500k I think?)

Lol - not for long. There will be a lot of undated contracts being negotiated at this very moment. It's amazing how long negotiations can take.



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miw
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peter fraser
29 May 2012, 03:12 PM
Lol - not for long. There will be a lot of undated contracts being negotiated at this very moment. It's amazing how long negotiations can take.


Not disputing that. Once again, I guess it depends when the sale is recorded - date of contract or date of settlement.

I guess in a few days it won't matter at all, since a 30-day settlement period will take us beyond 1st July.

The truth will set you free. But first, it will piss you off.
--Gloria Steinem
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peter fraser
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miw
29 May 2012, 03:27 PM
peter fraser
29 May 2012, 03:12 PM
Lol - not for long. There will be a lot of undated contracts being negotiated at this very moment. It's amazing how long negotiations can take.


Not disputing that. Once again, I guess it depends when the sale is recorded - date of contract or date of settlement.

I guess in a few days it won't matter at all, since a 30-day settlement period will take us beyond 1st July.

Ad Valorem stamp duty calculations are based on the date of the contract. In Qld the contract is dated when the vendor countersigns. If the negotiations are still continuing then the contract should be dated when all conditions price etc are finalised.

In practice the agent usually dates the contract when the vendor signs because the agent thinks that the contract may be completed within 30 days (standard for Qld) but in reality if too much time has elapsed they simply put the contract at risk if the buyer can't arrange finance in 14 days from that date, and settle within 30 days.

I have yet to meet a single agent who appreciates that they work against their own benefit by putting stress on buyers unnecessarily. I always suggest that buyers arrange 5 or 6 week contracts to allow for public holidays, delays etc. It save a lot of stress.

It is likely that agents who understand will tell buyers that he/she will hold back the dating of the contract for the buyers economic benefit and make themselves "good blokes" in the buyers eyes. Not too hard to do in a slow market, the vendor just wants a sale and a few weeks is a small price to pay.

OTOH you may not believe that a real estate agent would bend a rule here and there.

Any expressed market opinion is my own and is not to be taken as financial advice
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miw
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peter fraser
29 May 2012, 03:53 PM
Ad Valorem stamp duty calculations are based on the date of the contract. In Qld the contract is dated when the vendor countersigns. If the negotiations are still continuing then the contract should be dated when all conditions price etc are finalised.
Thanks Peter. I have now learned my something new for the day and can head off to to the pub. :D

Quote:
 
I have yet to meet a single agent who appreciates that they work against their own benefit by putting stress on buyers unnecessarily. I always suggest that buyers arrange 5 or 6 week contracts to allow for public holidays, delays etc. It save a lot of stress.


Vendors seem to have trouble with short settlements as well at times. I had a case where the vendor took an extra week getting the approvals from their mortgage-holder. Caused horrible complications because I foolishly had two settlements tied to the same timeline (and hence inconvenienced the other vendor). Had it not been for the fact that it was a fire sale and the price heavily in my favour, I would have just told my conveyancer to refuse to budge on the date and crash the contract. I will never sign a 30-day settlement again from either side.

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OTOH you may not believe that a real estate agent would bend a rule here and there.


Never happens.
Edited by miw, 29 May 2012, 04:24 PM.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
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peter fraser
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miw
29 May 2012, 04:23 PM
Thanks Peter. I have now learned my something new for the day and can head off to to the pub. :D

I should add that the monetary value of the duty is calculated on the consideration (price) but the ad valorem rate applied is based on rate applicable on the date of the contract.

I know that you know that, but others reading may not.

Enjoy the beer...

Any expressed market opinion is my own and is not to be taken as financial advice
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