The first time the RBA has ever lifted rates three months in a row

Hi InsideStory readers,



Here you go the latest CommSec report.



Some excerpts from the report to give you a feel for what it covers…..



The Reserve Bank (RBA) has increased interest rates for the third consecutive month – the first time it has ever lifted rates three months in a row. The cash rate was lifted from 3.50 per cent to 3.75 per cent.

�� The RBA made two references to higher dwelling prices in the latest statement. The housing market will clearly be a central issue for the RBA in 2010.

What does it all mean?

• The latest rate hike will have its greatest impact on consumer sentiment & psychology rather than on household finances. According to the Commonwealth Bank more than 90 per cent of its home loan customers are ahead in their loan repayments. And while those who have taken out loans in the past six months may be up for higher repayments, few could say that they didn’t see it coming.

CommSec Report - Ecomonic Insights (pdf)

Enjoy the read, and remember to send you questions to www.asktoopie.toop.com.au and we will answer them every Wednesday Live and Interactive on the show, and blog them to you as well.



Regards




Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Australians opt to better utilise their bigger homes

InsideStory followers,



CommSec pulled a great piece of research out of the hat this week and made really interesting reading. Here are some exerts from the report to tempt you to read on……



· NSW still has the biggest houses in Australia – and by a large margin. The size of the average new house built in NSW in 2008/09 was 262.9m², followed by Queensland (253.0m²), Victoria (249.5m²), Western Australia (243.9m²), ACT (239.4m²), Northern Territory (232.3m²), South Australia (195.2m²), and Tasmania (190.6m²).



· The other interesting figures released recently relate to housing mobility. The Bureau of Statistics report for the 2007/08 year show that less than half of all households had moved in the past five years to (43.4 per cent). Those that were more likely to have moved in the past five years were private renters (85 per cent) while only 15 per cent of homeowners without a mortgage had shifted premises and 42 per cent of those with a mortgage.

· When the same question was asked a decade ago, 73 per cent of people had moved house in the past five years. All groups had moved more often, including homeowners (56 per cent) and mortgagees (67 per cent).



So in simple terms, figures suggest that an extra 166,000 homes would have been needed had not Australians opted to better utilise their bigger homes over the year

CommSec Report - Economic Insights (pdf)


This summary report into house sizes is an easy read and worth taking a few minutes to look at. For real estate agents, the drop off in mobility will put a shiver down your back bone!!



Enjoy,



Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Dynamics changing, but Adelaide's market healthy and stable.

Dominating real estate news this week: the Reserve Bank’s controversial third consecutive interest rate rise, Westpac’s instant move to drive rates even higher & the release of CommSec’s report into the size of Australian homes.

Westpac are leading the “pack” with their 0.45% hike in rates. Certainly disappointing, but is this the trigger investors have been waiting for to re-enter the market? RP Data’s view is... “The twenty five basis point rise from the Reserve Bank is likely to take the average variable rate up to 6.55%... This is still well below average levels which tend to be above 7% & significantly lower than the recent peak when mortgage rates were 9.6% in July & August last year.”

As the First Home Owners Boost ends this month & with interest rates moving up, the dynamics are changing quickly. Investors have been waiting for these events & InsideStory has been predicting them. We have already seen a softening of the sub $500,000 market as buyers have gone from “anxious & enthusiastic” to “cautious & conservative”. Meanwhile the top end of the market has been fast & furious, making up for the record low volumes this bracket experienced last Spring.

Consistent prices plus last month’s volume of auction & pre-auction sales at all levels, (even in the $3-$4 million range), reflect a healthy stable market. Buyers, a reminder to register for VIP advice on “off market” listings at www.register.toop.com.au.

Now some highlights from RP Data’s Riskmark Monthly report & CBA’s CommSec Research Report released this week.

RP Data
“Over the first ten months of 2009, Australian home values have risen by 10% following on from their 3.8% peak-to-trough falls in 2008. Over the year-to-date Melbourne has been Australia’s best performing capital city, delivering capital gains of +14.9%. Sydney is up by nearly 1% per month with cumulative growth of 9.9%... most of the other capital cities have performed strongly with Darwin (+12.7%) leading the way, followed by Canberra (+11%), Brisbane (+6.9%), Perth (+6.1%)
& Adelaide (+4.6%).”

CommSec
“Australian homes are biggest in the world. Data commissioned by CommSec from the Australian Bureau of Statistics shows that the average floor area of new homes hit a record high of 214.6m² in the last financial year... the average size of new homes started in the US stood at 201.5m².

For the first time in at least a century, the number of persons per household rose during the 2007/08 year from 2.51 to 2.56 persons... If the size of the average household continues to rise, there will be reduced demand for new houses & apartments.”

The terrific news is that Adelaide’s market continues to be stable, consistent & reliable... you can’t ask for more than that! To read the full reports go to www.insidestory.toop.com.au

Why not get even more involved in the world of real estate? We are “live & interactive” every Wednesday at 1pm on www.toop.tv, answering your property questions live plus those sent in to www.asktoopie.toop.com.au. This week’s show was compulsive property viewing including a sensational interview with RP Data’s David Williams & Toop&Toop’s own Peter Veitch. If you missed us live, this broadcast is now available to view or download as a podcast at www.toop.tv



Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group