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Avg standard mortgage rates over time

Welcome back below average mortgage rates

With the low CPI reading earlier this week, a drop in the cash rate next Tuesday is pretty much a done deal.   The question is now will the RBA cut the cash rate by 25 or 50 basis points?  According to financial market expectations (based on the ASX cash rate futures yield curve), the cash rate […]

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House price gap

The pre-stamp duty surge

We’ve just updated our month to month models for transaction volumes and the results for Queensland are certainly interesting.  Most Queenslanders would be aware of the stamp duty changes that were brought in with the latest Budget announcement earlier in the year:  from the first of August owner occupiers would no longer benefit from stamp […]

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Time to buy a dwelling index

What does the recent improvement in consumer confidence mean for the Australian housing market?

The relationship between consumer confidence and housing market activity is a topic that we often comment on in relation to the housing market.  The importance of a positive consumer mindset is simple; for a prospective buyer to make a high commitment purchase decision like buying a home they need to have a base line level […]

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The rate hike we didn’t have

The interest rate ‘hold’ decision earlier this week marks nine straight months of flat rates; the most stable interest rate environment for five years. Anyone would be forgiven to raise an eyebrow at that; the spectre of an interest rate rise has been lurking since at least March when the core inflation reading bottomed out […]

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Will higher interest rates affect the housing market?

With another interest rate rise seemingly around the corner thanks to the high CPI reading for June, it is worthwhile looking back to see how interest rate rises over the recent past have affected the housing market.  The Reserve Bank started lifting interest rates back in October 2009; prior to that, the average standard variable […]

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Annual change in CPI over time

For the economic prosperity and welfare of the people of Australia

On July 27th at 11:30am a very large number of Australians will be flocking to the Australian Bureau of Statistics web site to check out the June quarter inflation numbers.  Maybe I’m just growing old and boring, but I can’t recall a time when the quarterly CPI figure had been so eagerly anticipated. The reason […]

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Annual change in qtrly housing finance commits

Fixed vs Variable… the vast majority prefer to move with the market.

Over the past few months there has been a great deal of speculation about interest rates and whether we are likely to see another rate rise from the Reserve Bank any time soon.  Prior to the most recent RBA meeting, most economists were tipping an August rate rise.  The first Tuesday of August is when […]

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Wisest place for savings

Aussie consumers keep their foot on the brake

Westpac and the Melbourne Institute released their monthly measure of consumer sentiment this week and it showed that confidence amongst consumers continues to wane.  The consumer sentiment index fell to 101.2 points in June 2011, its lowest level since June 2009. Despite the fall in sentiment, the index remains above 100 points which indicates that […]

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Gross rental yields

Is the tide starting to turn for the Perth housing market?

Well… not yet based on the fact that home values are still falling, but the underlying fundamentals are starting to look much better compared with other capital cities.  Perth home values have recorded the weakest results of any capital city, down 7.1% over the year to April 2011 (which also equates with the peak to […]

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Monthly volumes

Market slowdown likely to create a hole in State budget revenues

The number of home sales moved upwards sharply in February, increasing from just 23,047 sales in January up to 32,090 in February.  The upwards movement is partly seasonal, with the January sales volumes typically lower due to the time of year.  The severe weather events recorded during January would have also contributed to a slower […]

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