State of the Nation 1-2-16

According to recently released research on the nation’s housing market, Australians are looking towards 2016 with a more positive outlook.

Results from a Westpac-Melbourne Institute Survey of Consumer Sentiment have shown that more people think that now is a better time to buy a house than any time during the last six months.

The time to buy a dwelling index in the survey rose by 13.9 per cent over January to 113, up from the 99.2 recorded in December.

Westpac chief economist Bill Evans said size of the month-on-month increase does point to the likelihood of a more positive outlook on the housing market however figures should be treated with some caution.

“The sharp increase in the Index in January will reflect some seasonality but the move is so large that we can only conclude that this print may be signalling some improving optimism in the housing market,” Evans said.

“Most of the improvement in the national Index was driven by a sharp improvement in New South Wales which has regularly posted the weakest readings amongst the states in recent times. For this reason it is best to be cautious but nevertheless encouraged by this result,” he said.

“This improvement in the outlook for housing was also indicated in the Westpac Melbourne Institute Index of House Price Expectations. The Index increased by 21.1 per cent in January from 103.7 in December to 125.8 in January,” Evans said.

“The Index is still down by 10.2 per cent over the year but this represents the best result since September 2015.”

House Price Report – Around the Nation

The latest Domain House Price Report – it’s been a mixed bag for dwelling median prices across the nation as we look at results for the previous year.

In the past 12 months Sydney’s median house price rose 14.8 per cent, while Perth and Darwin have seen prices fall 4.5 per cent and 1 per cent respectively.

For the December quarter, Hobart was the strongest performer, recording a 7.9 per cent increase in its median house price.

The median house price now sits at just under $360,000 in the Tasmanian capital, having increased by 8.7 per cent in the 12 months to December.

Canberra was the next best performing housing market over the quarter, with its median house price increasing by 4.3 per cent to $652,307.

The median house price in the nation’s capital is 9 per cent higher than the corresponding period in 2014.

Adelaide and Melbourne both saw 1.8 per cent increases in their median house price over the quarter; however the yearly figures again paint a different picture, with Melbourne recording a year-on-year median increase of 14.5 per cent to Adelaide’s 6.7 per cent.

Brisbane’s median house price increased 1.5 per cent over the quarter and posted a 4 per cent year-on-year increase.

Looking at the unit market, Sydney was again hit by a record quarterly decrease as the median price fell by 2.8 per cent to $655,845 however the median unit price is still 8.7 per cent higher than 12 months prior.

Over the quarter, Adelaide was the best performing unit market, with the median price up 3 per cent, followed by Perth’s 1.5 per cent increase.

The median unit price increased 1.3 per cent in Melbourne and 0.8 per cent in Canberra.

Hobart experienced a 3.3 per cent decrease over the quarter, while prices declined in Brisbane and Perth by 1.1 per cent and 0.4 per cent respectively.

Rates to Remain Low

The Consumer Price Index (CPI) for the December 2015 quarter indicates that the current environment of low interest rates in Australia is likely to continue.

“In the December quarter, the CPI rose by 0.4 per cent and an annual rate of 1.7 per cent.

These figures are well below the RBA’s target zone of 2-3 per cent and should ease any pressure on the interest rate outlook,” Real Estate Institute of Australia president Neville Sanders said.

“This means that we can expect a sustained period of low interest rates which is good news for home owners,” Mr Sanders said.

The inflation figures back up recent predictions by leading economists Bill Evans from Westpac and Shane Oliver from AMP Capital.

Dr Oliver said global economic conditions could force the RBA into lowering the cash rate to 1.75 per cent this year whereas Mr Evans suggests that the official cash rate will remain unchanged at 2 per cent through 2016.

“Despite markets confidently expecting that the Reserve bank would cut rates by February Westpac has remained firmly of the view that the Bank will remain on hold throughout the second half of 2015 and the whole of 2016,” Evans said.
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About ljgrealestate 据联大

Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085.
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