Where is the Home Property Market going right now?
February 22, 2010 by Tim
Filed under Finance, Renovating, property market, tips
Well talk about confusion!
Never seen so much smoke and mirrors:plenty of countervailing currents here. Many reports say a home in Sydney and Melbourne are amongst the worlds most unaffordable compared to income. Interest rates are on the rise. More land is released on the fringes of Melbourne. Some of the First Home grant incentives are being wound back.
Mark Armstong, CEO of Property Planning Instiute says, The use of Median figures, as indicators of affordability greatly over simplifies the property market. A Sydney home appparently ranks second most unaffordable compared to incomes right behind Vancouver.
AMP’s Economist, Oliver says continued “under building” of around 45,000 to 50,000 homes a year. ANZ Bank is also very optimistic, for the home market. What can it all mean?
Lets keep it simple. I argue, if Australia is raising interest rates this will be only be after careful consideration of the world economic data. We simply cannot afford a slowdown or recession in an election year. In the USA, current data and reports suggest interest rates will remain low for the foreseeable short term future. Thus, I say interest rates are a likely laggard. If Australia continues to grow, as seems likely, there will be more numbers of people employed and for longer hours, thus leading to higher family incomes. Latest figures show some extra 160,000 employed in the last 6 months. I prefer to see the home market as “prices up side risk”.
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With a huge popullation increase prediction over the next 40 years (from 22M moving to 35M), many challenges are ahead of us in terms of infrastructure projects to welcome that growth… Many would argue Australians don’t want a big Australia, the business world and overseas competitiveness will force Australia to keep up with the pace and nothing will stop this phenomena. The property market becomes such a powerful vehicle to move towards financial freedom…
With a huge popullation increase prediction over the next 40 years (from 22M moving to 35M), many challenges are ahead of us in terms of infrastructure projects to welcome that growth… Many would argue Australians don\’t want a big Australia, the business world and overseas competitiveness will force Australia to keep up with the pace and nothing will stop this phenomena. The property market becomes such a powerful vehicle to move towards financial freedom…
With a huge popullation increase prediction over the next 40 years (from 22M moving to 35M), many challenges are ahead of us in terms of infrastructure projects to welcome that growth… Many would argue Australians don\\\’t want a big Australia, the business world and overseas competitiveness will force Australia to keep up with the pace and nothing will stop this phenomena. The property market becomes such a powerful vehicle to move towards financial freedom…
With a huge popullation increase prediction over the next 40 years (from 22M moving to 35M), many challenges are ahead of us in terms of infrastructure projects to welcome that growth… Many would argue Australians don\\\\\\\’t want a big Australia, the business world and overseas competitiveness will force Australia to keep up with the pace and nothing will stop this phenomena. The property market becomes such a powerful vehicle to move towards financial freedom…
With a huge popullation increase prediction over the next 40 years (from 22M moving to 35M), many challenges are ahead of us in terms of infrastructure projects to welcome that growth… Many would argue Australians don\\\\\\\\\\\\\\\’t want a big Australia, the business world and overseas competitiveness will force Australia to keep up with the pace and nothing will stop this phenomena. The property market becomes such a powerful vehicle to move towards financial freedom…
Alll good stuff, no argument here. Wonder why you have sent me thisd 5 times. Cant complain as most astute comments.!
written more for you and others re population pressures!
And I’m also fascinated by how good you made the routine [admit it: what you just shared has been regurgitated millions of time.
Hi Doyle , While my research of the property market is largely here a montage of other Economists and commentators. I try and bring these ideas together and add my own insight. This might help some people in there decisions. There has never been so much confusion in my local home market in Melbourne, Australia. I contend that many of the bank and industry economists might have a biased or hidden agenda . Thus I have filtered their views. I write this as a free service to build a following for my upcoming ebooks sales. Hope you like it.
Yours Writer.