31. July 2015 11:59  /  swanvalleyrealtyblog Comments (0)

According to the Real Estate Institute of Australia (REIA), the 2015 June quarter Consumer Price Index (CPI) figures support the Reserve Bank of Australia’s (RBA) July assessment that inflationary pressures are well contained and likely to remain this way. 

REIA President Neville Sanders said this was good news for home owners and should translate into a sustained period of low interest rates. 

“In the June quarter, the CPI rose by 0.7 per cent and an annual rate of 1.5 per cent. These figures are below the RBA’s target zone of two to three per cent and should not put pressure on the interest rate outlook. 

“The annual changes for the analytical series of trimmed mean and for the weighted median were 2.2 per cent and 2.4 per cent respectively, and compare to the changes for the 12 months to the March quarter 2015 of 2.3 per cent for the trimmed mean and 2.5 per cent for the weighted median,” Mr Sanders said. 

The housing group increased by 0.7 per cent for the June quarter and an annual rate of increase of 2.5 per cent. 

The main increases in the June quarter for the housing group was for new dwelling purchases, which increased by 4.8 per cent, while rents increased by 0.4 per cent for the quarter and 1.9 per cent for the year. 

“With inflation under control, combined with a slowdown in housing finance, it’s reasonable to expect that the RBA will not be increasing interest rates in the medium term, providing a stable outlook for home buyers,” Mr Sanders said. 

15. May 2015 10:51  /  swanvalleyrealtyblog Comments (0)

The Federal Budget has some incentives for the Real Estate sector as explained in this article by REIWA. The Real Estate Industry of WA also welcomed the retention of the stamp duty exemption in the State Budget. REIWA President David Airey said the exemption on stamp duty for homes under $430,000 is a huge benefit to all first time buyers.

Real estate sector comes out on top in Federal Budget

NEW

2. April 2015 10:54  /  swanvalleyrealtyblog Comments (0)

The following article is by Kate Jones and was published on the realestate.com.au website on 1st April 2015;

Interest rates are widely tipped to drop again this year, but experts say it won’t happen in this month.

The Reserve Bank of Australia is likely to keep rates steady at its monthly board meeting as it takes a watch-and-see approach to the economy.

Kirsty Lamont, director of finance comparison website Mozo, says the RBA is still judging the impact of its 0.25 per cent rate cut in February.

“I expect the Reserve Bank to cut rates again in the first half of this year, but having said that April will be too early,” she says.

“The Reserve Bank is still watching how the February rate cut will flow through the economy.”

 While rates are low, smaller lenders hold more sway in the finance market. This means homeowners have a golden opportunity to secure a low home loan rate and get stuck into paying off their mortgages, says Lamont.

“Pay down as much of the home loan as possible because interest rates are at record lows,” she says.

Fierce competition in the lending market has prompted more homeowners to leave the big four banks for lesser-known lenders, Lamont says.

“There’s a real gap between the best rates on the market and those offered by the big four,” she says.

“That gap is almost 1% and that makes a huge difference. A lot of people are switching from major lenders to small lenders like challenger banks and online lenders.”

Financial planner Scott Haywood says surging property prices in Melbourne and Sydney will influence the RBA to keep rates on hold in April.

 “The Reserve Bank made it clear they’re concerned about property prices in Melbourne and Sydney with clearance rates over 80% (on the middle weekend in March),” he says.

“So to cut again now after such a high clearance rate would be too aggressive.”

The RBA remains concerned about business and consumer confidence with governor Glenn Stevens telling the American Chamber of Commerce in Australia recently: “Australian businesses and households seem to be getting less optimistic about the future”.

Lowering interest rates will stimulate the economy, but Haywood says this cannot be done too quickly.

“A rate cut of 0.25% doesn’t have the power and impact on the economy as it did, say during the global financial crisis,” he says.

“But the Reserve Bank doesn’t want to spook or scare the Australian public by doing a 0.5% cut.

“As soon as it sees business confidence pick up, the cuts will stop.”

Haywood, who tips a 0.25% rate cut in May, expects unemployment to rise this year and the Australian dollar to continue its fall against the US dollar.

9. March 2015 11:48  /  swanvalleyrealtyblog Comments (0)

According to CoreLogic by RP Data this may be the case. RP Data have released the following article stating that the current low mortgage rates are invigorating the housing market from the analysis of data they collect.

5. February 2015 10:23  /  swanvalleyrealtyblog Comments (0)

A recent survey conducted by Slater and Gordon Conveyancing Works suggests that Australians are increasingly heading online to do their house hunting. 

The independent research surveyed 2000 people with 58.5 per cent saying they would head to real estate websites to do their house hunting. 

REIWA Chief Executive Officer Neville Pozzi said the trend towards online house hunting was a driving force behind the recent re-launch and upgrade of the company’s real estate portal, reiwa.com. 

“We are very aware that the internet is the first port of call for the majority of people looking for property. It’s where their research begins, which is why we completely overhauled our site last September with a new look, new features and easier navigation,” Mr Pozzi said.

The Slater and Gordon Conveyancing Works results found that of the people surveyed, 61.7 per cent of the people who would choose to hunt for a home online were women, while 56 per cent were men. 

It also found that in all age brackets more than 50 per cent of people surveyed would search online first, with 35 to 44 year olds the most likely at 68.8 per cent. 

Slater and Gordon Conveyancing Works lawyer, Robert Kern, said the results were not surprising. 

“Buying a house is a big commitment so it makes sense that people want all the information they can get; and where better than a site that is a one stop shop?” Mr Kern said.

Extracted from REIWA website, for full article go tohttp://reiwa.com.au/About-Us/News/Research-shows-trend-towards-online-house-hunting/

5. February 2015 10:15  /  swanvalleyrealtyblog Comments (0)

President of the Real Estate Institute of Western Australia, David Airey, has commended the Reserve Bank of Australia’s (RBA) decision to drop interest rates by 0.25 per cent and urged the banks to pass it on in full. 

“Consumer sentiment is weak and property sales have been sluggish for the start of the year. However, this drop in interest rates, along with falling petrol prices is a real boost to household finances,” Mr Airey said.

The Real Estate Institute of Australia has also welcomed the decision with President Neville Sanders saying the RBA Board had made a considered and accurate assessment of the property market. 

“The significance of the easing monetary policy is that housing affordability in Australia will improve further, however we need today’s cut to be passed on fully by lenders,” Mr Sanders said. 

The official interest rate is now 2.25 per cent, a record low, following one of the longest periods of interest rate stability. 

Mr Airey said he hoped the drop in interest rates would encourage more buyers to enter the market. 

“Housing affordability has improved a lot over the last year and with the increase in listings, home buyers have far more choice than they did two years ago. 

“This cut will typically save around $50 per month on a $300,000 mortgage,” Mr Airey said. 

Article from REIWA.com.au website 3rd Feb 2015

14. January 2015 10:29  /  swanvalleyrealtyblog Comments (2)

In the Market Watch section of The Sunday Times real estate lift out Terry Ryder, founder of hotspotting.com.au stated that although momentum in WA has cooled, affordable suburbs were the best investment option and that these suburbs are resisting the pattern of market activity tapering off.

Mr Ryder includes the Swan local government area in his list of the strongest markets in Perth. He explains that The City Of Swan is hot due to Urban renewal, government policy and job nodes.

With regards to affordability Ellenbrook still has a median price range of $439,00 which puts in among the most affordable suburbs in Perth.

Source; Sunday Times Jan 11, 2015

9. December 2014 09:21  /  swanvalleyrealtyblog Comments (0)

As outlined in a past post there are a variety of events in Ellenbrook and Aveley hosted by community groups and businesses getting into the spirit of Christmas with Pageants, Concerts, Carols, and Arts and Markets. Now the fantastic residents of Ellenbrook and Aveley are putting on their own shows too!

The poster below gives the addresses of the great residents who have put an effort into spreading some Chrissy Cheer around the neighbourhood.

What a great cheap family night out to map out and drive by these wonderful houses. I’m looking forward to showing my children. My own photos to come…

19. September 2014 12:20  /  swanvalleyrealtyblog Comments (0)

It’s great that Ellenbrook is growing and thriving but with growth comes some issues with traffic congestion and the need for more infrastructure and services. So i’ts good to know that the following will be occuring soon.