Certain Facts about Real Estate Market in Australia
|Submitted on: Thu, 19 Dec 2013 04:32:59||Views: 186|
According to the Australian Bureau of Statistics 22 years ago, the first time home buyers made for the smallest proportion in the real estate market. The data from the bureau showed that the first time home buyers dipped about 12.5 percent in September, 2013 the lowest figures were recorded in July 1991. The previous low was recorded in March 2004 in 12.8 percent.
This year since February, the actual number of first time home buyers (6363) were swamped by the influx of upgraders and investors. The value of the investment leads to the 5.2 percent leap in September. The number of loans to ownership occupiers increased to 4.4 percent. The UBS Australia's chief economist Scott Haslem said that relative affordability is driving the demand in new houses for sale Darwin from investors and upgraders. The first time home buyers are actually failing to compete in this dynamic market. He went on to say that, housing in Australia remains an expensive venture. Yet it has become cheaper than it has been for the last decade considering the falls in interest rates and low prices. "In contrast though, first home owners aren't seeing relative affordability, they're seeing absolute unaffordability, so I think for first home owners housing in Australia still looks pretty expensive."
The senior economist of Westpac, Mathew Hasan said that high home prices are one of the factors, however, there are other few reasons because of which the first time buyers are steering clear of the real estate market. He explained that the previous state government incentives for the first time home buyers have become less generous over the last year or so. Other than this, in some cases, the organization also saw strains appearing on the labor markets that have an undesired effect on the first time home buyer.
Another reason is the sudden depreciation in lending to the first time home buyers. Despite research stating that banks are willing to lend more than the fixed purchase price than the last few years, the fall is imminent. The principal of Digital Finance Analytics, Mr. Martin North stated that lenders are competing strongly to win against the businesses in the lower credit growth ecosystem. This means that there is a lowering in the lending standards. He had observed that there has been a slight acceleration of higher loan-to-value ratio loans being written. From the lows back in 2009-10, they've pretty much doubled than what they were. This is explained partly by some of the first time buyers essentially trying to access the market and the banks willing to lend in more than they needed previously. There is a noted sharp rise in the number of investors and loans. What these people look forward too is the tax benefits. The major lending institutions are vehemently denying the lowering of the standards.
The figures by Mr. North showed that companies are lending on an average of 80.8 percent of the purchase price to those of the first home buyers. This is up from the 72.5 percent under just three years ago. This was the situation of the bank lenders.
The non-bank lenders are probably being lesser cautious for deposit they require from the home loan borrowers. The non-financial institutions are more than happy to provide loan to value ration loans, however, these do not appear in the official statistics because they are measured in a different manner. He continued to say, that he has to watch this quite closely. There will be some traps in the future if the people are not careful. The trap lay in the fact that these financial institutes lend more than the property value. This exposes them to various loses resulting in the fallen price of real estate. Mr. North days that property price falls are unlikely for the Australian market, however, the market is vulnerable in the end.
The author found that the real estate market of Australia has not been that affected. However, the loans lend for the new houses for sale Darwin can affect the overall trend in the future. For more info visit theheightsdurack.com.au
» Latest news on : Real Estate
» Google News for: Certain Facts about Real Estate Market in Australia
Lates tweets about Business / Real Estate
From @PolliMo4 on Thu Nov 14 11:03:08 EST 2019|
That he's not rich, not even broke, worse...in debt, big debt, a billion. Stuck with a bunch of bad real estate dea… https://t.co/eDeYv2yTqA
From @McDevitt_Law on Thu Nov 14 11:03:04 EST 2019
The Housing Market’s Pending Changes https://t.co/ROOWC2s9pz https://t.co/dT9VW7kKKv
From @frontendwp on Thu Nov 14 11:03:02 EST 2019
From @RTUKSeller on Thu Nov 14 11:02:57 EST 2019
RT @CountplusA: Starting A Real Estate-Based Business? Here Are 5 Areas That You Will Need To Excel In To Succeed https://t.co/mzuI1yYEdR…
From @SiriusRE on Thu Nov 14 11:02:56 EST 2019
Figures out today confirm that the German economy 🇩🇪 has avoided the #recession that many economists predicted. Our… https://t.co/FIewJM5api
From @OurRevTexas on Thu Nov 14 11:02:53 EST 2019
RT @carterforva: Home prices up 33%
Homes for sale down 26%
Good news for real estate speculators, bad news for people that are just trying…
From @aprilkruseagent on Thu Nov 14 11:02:52 EST 2019
Which one of these landmarks is still on your list of places to visit?
APRIL KRUSE, REALTOR
United Real Estate Lo… https://t.co/Zy35WnGMjV
From @M_FaizanMaqsood on Thu Nov 14 11:02:46 EST 2019
DHA Lahore Phase 10 Affidavit (1-Kanal) 44.25 Lacs
DHA Lahore Phase 10 Allocation (1-Kanal) 39.50 Lacs
Ch Mujahid… https://t.co/NJb1Gj3syw
From @mayo4u on Thu Nov 14 11:02:42 EST 2019
RT @KindAndUnblind: THREAD: @BernieSanders in the @bfp_news, 1980: "'The group’s primary aim is to make city government responsible to, and…
From @Al61562896 on Thu Nov 14 11:02:36 EST 2019
President Trump's business empire has secured preliminary approval for 38 new business trademarks in China, which i… https://t.co/RqrWiz4emC
Copyright © 2008 - 2011 VIC Consulting - WEB Development, website promotion & SEO services
Autos neuves et usagées |
Ottawa used cars, furniture & real estate |
Toronto Business Real Estate