Welcome to

Danesfield.com.au!

As a valued client of Andy Wyatt at Select Mortgage Services this Finance and Information website is here for you, your family & friends...

Perth Zoo

LATEST FINANCE NEWS


Australians may be gloomy about the country's economic outlook, but the property market outlook may come as a surprise.

16/2/2012

While Allianz and News poll’s Optimism Index indicates that Australians’ optimism about the economy remains at its lowest level since mid-2011, NAB’s latest Residential Property Index is back in positive territory.

The bi-monthly Allianz and Newspoll survey, which claims to measure Australians’ level of optimism about the future of the economy, environment and society –as well as their overall happiness – has now exceeded the historical low reached in May 2011.

“Australians’ optimism about the future of the economy hit a 2011 low in May, with the Optimism Index falling from 14 to 9, reaching a level less than half the Index level of 20 achieved when the survey commenced in November 2010. This may have reflected the aftermath of the summer of natural disasters, exacerbated by global economic uncertainties,” said Allianz Australia managing director Terry Towell.

“After bumping around at relatively low levels over the second half of 2011, Australians’ optimism about the economy has started 2012 on a low, with the Optimism Index falling back to only 8.”

Western Australia was the state with the highest Index score (27), followed by NSW (7). Victoria bottomed the table with a score of 3, followed by Queensland and SA with 4.

   The mood is better amongst property professionals however, with NAB’s latest Residential Property Index recording a positive score of +1 for the December quarter – following two consecutive quarters of negative results.

The survey recorded significant regional variations, with Victoria (-22) and Queensland (-18) once again proving to be the two states with the gloomiest outlooks. New South Wales (+31) and WA (+18) were the two states where confidence in the property industry was at its highest.

Looking ahead, the survey found that national house prices are expected to grow by 1.2% by December 2013. Once again, WA and NSW are expected to lead the pack.

“WA is expected to significantly outperform the other states, with prices rising by 3.2%. In NSW, prices are forecast to rise by 1.9%, with growth of 0.8% and 0.5% tipped for SA/NT and Queensland respectively. House price growth is forecast to be slowest in Victoria at 0.3%, but this represents and marked turnaround from a -2.1% decline forecast in September,” said the report.

It goes on to paint a positive outlook for the Australian real estate market, stating that NAB believes that these expectations “may be a touch pessimistic”. The bank points to the following factors that should underpin Australian real estate going forward:

·             A shortage of housing

·             Weak building commencement figures

·             Falling interest rates

·             Comparatively low unemployment

“These factors should continue to maintain a floor under house price growth, which we see resuming at below 4% in 2012 after drifting down in 2011,” says the report

Source: Allianz Future Optimism index 

Author: Created: 5/11/2011 4:11 PM
All the latest in Finance, Real Estate and the ASX...
By host on 5/12/2011 12:38 PM

Economists widely believe the Reserve Bank will keep rates on hold again when the Board meets later this week.

According to HSBC economist Paul Bloxham, the RBA is largely comfortable with the current monetary policy setting.

By host on 5/11/2011 4:57 PM

The RBA’s decision to keep the official cash rate on hold will provide a nice confidence boost to the residential sector.

According to the Housing Industry Association’s senior economist Andrew Harvey, residential construction activity has been buckling under the weight of a range of factors, not the least being the already restrictive level of mortgage and business loan interest rates.

By host on 2/3/2011 5:45 PM

The number of housing finance commitments being taken by first time buyers were at their lowest level in six years during 2010 with much of the demand brought forward during 2009. During 2010 only 96,201 first home buyers committed to housing finance for the purchase of a home. This represented the lowest volume of first home buyers annually since 2004 and came off the back of the largest number of first time buyers in a single calendar year in history during 2009.

By host on 2/3/2011 5:28 PM

Australian Property Monitors believes that the Australian property market will return to growth in the second half of the year.

The group's latest Quarterly Housing Report argues that growth is likely to return by mid-year, especially in Sydney. APM believes that, despite the the decline in buyer activity that accelerated during 2010, the fundamentals of the property market remain sound. A strong economy, rising incomes and an ongoing housing shortage are among the key factors that will drvie the recovery.

Rates on Hold until Mid Year
Steady Rates help housing market
First Home Owners retreat to the sidelines
Property price growth to return within 6 months
 Privacy StatementCopyright 2011 by Danesfield Finance