This makes for interesting reading with plenty of handy data coming from the APM team. So much of what drives the market is confidence & with a federal election now set for September we can all look forward to what the ballot box will bring…at least that’s the theory anyway!!!
House prices jump in December quarter
The national median house price rose 1.9 per cent over the last quarter in 2012 and 2.1 per cent across the year – according to The Australian Property Monitors (APM) December Quarterly House Price Report.
APM senior economist Dr Andrew Wilson said while local factors still predominate housing markets, record low interest rates have boosted confidence.
“Looking ahead, activity will depend on the direction of local economies as it is no coincidence that the better performing housing markets in 2012 reflected better performing economies,” Dr Wilson said.
Home sales rise
Australia’s housing sector ended the year with some good news, reporting a third monthly rise in the number of new homes sold. The Housing Industry Association’s (HIA) data shows new home sales rose 6.2 per cent in December, after rising 4.7 per cent in November, and 3.4 per cent in October.
HIA economist Geordan Murray suggested it indicated a possible rejuvenation of the housing market in the coming months but, he said, it would depend on any interest rate cuts and other support.
“If we look at the under-performing market for 2012 – detached houses – the December improvement was broad-based as sales increased in all but one of the surveyed states,” he said.
Buyers coming back to the market
CommSec economist Savanth Sebastian believes interest rate cuts, as well as state grants, appeared to have encouraged would-be homebuyers into the market.
“In large part the recovery is driven by new state government grants that favour home building in preference to the purchase of existing homes – but rate cuts have also boosted home affordability, the job market has remained resilient and budding home buyers appear to have more confidence to enter the market.