Australian house prices defy the economic downturn

Posted on July 23, 2009 by peter 
Filed under Australia Real Estate News · Tagged:

Median Australian house prices appear to have defied the downturn.

Predictions of a dire downturn of Australian house prices seem to have been shaken for the time being, as most residential markets ended the 12 months to the end of June in positive territory.

Although the outlook for residential property in 2010, in the post-first-home-owners-boost payment period, is uncertain, figures from Residex show few markets posted big falls in the past financial year.

Perth was the worst performing market of the period, with a 5.76 per cent fall in the median value, to $475,500. The dip followed a couple of exceptional years of growth and a 10-year average of healthy, 12.41 per cent annual gains.

At the opposite end of the spectrum is Darwin, which powered on regardless of the economic downturn, achieving 14.81 per cent median house price growth, to a median house price of $477,000.

Sydney’s median house price sits at $577,500, after the harbour city posted marginal 0.79 per cent growth during the year.

Melbourne outclassed its northern neighbour, with gains of 2.69 per cent during the same period. Its median house value is now $492,400.

Brisbane’s fell slightly, by 0.06 per cent, in the 12 months to June 30, to end at $452,500. Like Perth, Brisbane’s fall comes after a period of strength, including 15.2 per cent growth in the 12 months to June 30, 2008.

Canberra’s median house price is $474,000, after gaining 1.36 per cent in the year to June 30; Hobart’s $356,000 after gaining 2.82 per cent.

Tips for selling your house

Posted on July 18, 2009 by peter 
Filed under US Real Estate News · Tagged: ,

selling-your-homeIn the current tough economic crisis, the idea of speculating to accumulate (spending money to make money) is a prospect that many property sellers may find difficult, particularly those who are carefully watching the purse strings.

However, experience shows us that by focusing on some key improvements to your home, you can make up to $3 for every $1 outlaid, and sell your home in less time and with less stress.

Different categories of buyers can be spooked by a variety of perceived problems with the property – and a glossy brochure and professional photos can’t cover over damage to the walls or a garden that has turned to wilderness.

Pick your target market and spend wisely. You’ll see the returns.

First-Home Buyers

First-home buyers love that “brand-new” feeling, and when they fall in love with a property, they can become competitive enough to drive the price up significantly.

However, they are easily scared off by cosmetic damage, which can cause irreversible heartbreak in their romantic adventure.

If your property appeals to this market, fix any cracks in the ceiling, dripping taps in the bathroom and rust stains on the kitchen bench.

You may know that the ceiling damage is only cosmetic and not symptomatic of any structural problems, but it can enough to kill the love affair.

First-home buyers don’t require a glamorous renovation, but something clean, neat and functional.

Spending a little money on replacing light switches, power point covers and door handles can modernise the look of the property, which may be enough to secure the First-Home Buyers’ passion, and their desire to bid up on the sale.

Secure haven for families

Families with children are looking for comfort, safety and security. Renovations may be considered further down the track, but for the moment, the family wants to settle in to a comfortable home.

If you target this market, make sure the home has a fence to protect wandering toddlers from the street and install locks on gates.

Create open spaces within the home where the family can gather comfortably.

Borrow or hire a good quality swing set for the yard, include an outdoor dining table, and your buyers will be salivating over the prospect of backyard barbecues with the family in no time.

Easy life for empty-nesters

Couples in their advancing years are looking to downsize, and live in a secure and low-maintenance home.

They require plenty of storage for their lifetime of possessions, and possibly a spare room for the grandkids to stay over.

Ground-floor properties are particularly sought after, but they must not have high maintenance requirements.

Hedges that need regular pruning, expansive lawns and garden beds are going to be a turn-off for this group. Likewise, elaborate light fittings and cornices that attract dust and cobwebs are going to produce more work for couples in their twilight years.

Best to go simple and minimal with your makeover, to reduce the upkeep.

UK Housing markey shows signs of upturn

Posted on July 18, 2009 by peter 
Filed under UK Mortgage and Finance News · Tagged: ,

According to a recent survey commissioned by the Home Builders Federation, the housing market is showing the first signs of an upturn since 2006.

The HBF’s survey of the UK’s major home builders found sixty percent of those asked had seen an increase in sales when compared to the same period last year.

The Home Builders Federation says the industry has been through the economic equivalent of a tsunami, with an estimated quarter of a million construction jobs lost in the last 12 months. The MBF goes on to say that the biggest obstacle to recovery is now the availability of mortgages or lack of.

Chancellor Alistair Darling is to meet with the banks next week to remind them of their legally-binding obligation to lend more money to homebuyers.

Steve Turner, spokesman for the HBF, said the survey results were a welcome boost.

“It’s been a very difficult year, but what we are starting to see is a consistent set of modest but positive results now in terms of visitor levels, in terms of reservations.

“I think for the first time in a number of months the industry is starting to feel more positive.”

However, experts were warning that the industry was still fragile because although new home sales had increased, they were at an extremely low level last year.

Newhome loan applications at 16 month high

Posted on July 9, 2009 by peter 
Filed under Australia Mortgage and Finance News · Tagged: , ,

home loanNEW home-loan applications soared to a 16-month high of 63,855 in May, but analysts warn the housing bubble will burst when lucrative government grants to first-home buyers are cut this year.

The average loan has risen 9.6 per cent in the past year to $266,900 on the back of soaring consumer confidence.

Owner-occupiers borrowed $17 billion, the highest monthly amount in 26 years, and a record level of first-home buyers accounted for more than 29 per cent of home loans.

Loans for new construction rose 8 per cent to 6334 – the highest level in seven years and 50 per cent higher than in December.

Erin Ronaldsen, residential research manager at real estate agency CBRE, said first-home buyers had helped prop up the market.

“In all likelihood the withdrawal of the first-home owners grant boost at the end of December, and state-based measures in July 2010, will have a dampening effect on the sub-$500,000 market,” she said.

“We expect falls could reach 10 per cent from the peak in some areas, depending on local market conditions.”

She said Victorian first-home buyers were getting better value than the national average.

The average value of the loan taken out by Australian first-home buyers has risen $20,400 since the introduction of the boost in October, but Victorian loans have risen an average $10,800.

CommSec economist Savanth Sebastian said almost 20,000 first-home buyers took out loans in May and banks were the big winners from the lending boom, writing almost 92 per cent of all loans.

“Consumer sentiment is well and truly out of the doldrums. The combination of rate cuts, fiscal stimulus and the perception that the worst is behind us has seen a substantial shift by consumers to being more optimistic about the future.”

But it all came back to job security, he said.

“With unemployment expected to rise in the next year, sentiment is likely to retreat from this exuberant level.”

Housing Industry Association senior economist Ben Phillips said the number of loans for new dwellings had risen for nine consecutive months, and he pointed to a modest recovery emerging for residential construction.