Australian house prices down at the end of 08

Demand for houses fell dramatically in the final quarter of last year, predictiong an  interest rate cut tomorrow more likely, experts say.

The official index of capital city house prices fell 0.8 per cent in the December quarter, the Australian Bureau of Statistics (ABS) said.

There were falls across all capital cities except Adelaide, Canberra and Darwin.

In the year to December, the official index decreased 3.3 per cent.

The drop in house prices makes a 100 basis point interest rate cut by the Reserve Bank of Australia (RBA) at its meeting tomorrow a strong possibility, the ABC’s business editor, Peter Ryan, says.

“The market is now tipping a one percentage point cut, which would take the official rate to 3.25 per cent,” he told The World Today.

“That would make a 45-year low, when rates were at 3.18 per cent in 1964.” Read the rest »

Rental yields 2009 winners

Charlotte Cossar
Editor – realestate.com.au
 
Investors can look forward to a good 2009 with rental yields looking to perform well this year thanks to a rental squeeze, low interest rates and property prices.

It is been a while coming and for many investors the notion of owning properties that could be cashflow positive was a pleasant, if not, fleeting thought. This year it looks like the tables are about to turn with many cashed-up investors being able to snag properties returning decent rental yields. Read the rest »

How does your City rate?

Of the 6 countries surveyed – Australia has the worst housing affordability with 24 of its 27 major urban markets severely unaffordable.

Of the 265 urban markets surveyed by Demographia, the Sunshine Coast in Queensland has the most severely unaffordable housing within the English speaking world, with housing prices 9.6 times household earnings – above that of Honolulu at 9.1 times, the Gold Coast, Queensland 8.7, Vancouver, Canada 8.4, Sydney Australia 8.3, San Francisco 8.0, Los Angeles 7.2, New York 7.0 and London, United Kingdom at 6.9 annual household earnings. Read the rest »