Real Estate Market Facts – Australia

The Australian weighted average median house price decreased by 1.3% during the December quarter to $442,038 compared with $447,950 in the September quarter 2008. This is a decrease of 6.2% compared to the December quarter 2007 when the Australian property market was at its peak and the Australian weighted average median house price was $471,216.

The Australian weighted average median price for other dwellings decreased 0.3% over the December quarter to $353,575, from $354,700 in the September quarter 2008. This is a decrease of 3.4% compared to the December quarter 2007 when the Australian weighted average median price for other dwellings was $365,977.

Source: Real Estate Institute of Australia

Australia’s Low interest rates increase interest!

The adjustment of 3.75% in the last five months is significant but not as high. However, in percentage change terms it is close to 50% of the peak rate of 7.25% in March 2008.

The auction clearance rates for the week ended 14th were significantly improved with some markets reporting a clearance rate of something in the order of 70%.

Australia’s growth rate in the year from Jan 07 to Jan 08 was 11.86% and this has reduced to -1.8% in the year ended Jan 09. This decrease looks significant and is, but looking at the monthly trend it would seem that we may have reached the low point as the rate of adjustment is slowing. The correction in December 2008 was -1.1% and is similar in January being -1.15%.

There was more activity and interest in the lower half of the market where 54% of all sales occurred.

In the last 12 months, Australia has experienced rental increases of 9% and 13.3% for houses and units respectively. This increasing rental yield will continue to occur and compensate investors for the lower capital growth which is occuring. In cash flow terms, investment is and will continue to become easier.

Source: Residex Newsletter - February 2009

Interest rate cut welcomed by REINSW

Today’s full one per cent cut in official interest rates has been welcomed by the Real Estate Institute of New South Wales. 

The 1% cut in official interest rates was announced by the Reserve Bank late today.

 

“Today’s action by the Reserve Bank is timely as the state desperately needs to attract investors back into the market,” said REINSW Steve Martin.

“This cut will hopefully deliver the type of momentum needed to kick start investor activity in NSW. Read the rest »