NSW update

According to Christopher Louis, of HomePriceGuide, with the recent release from ABS of Housing Finance Approvals this week, the numbers were good for all states and territories except for NSW where another fall was recorded.

He goes on to say that the NSW result is surprising as the trend has been up of late, indicating that home owners have been entering the market place again; up until recently of course, as the last two months of recorded approvals (Jan and Feb), are actually in decline.

He views it as symptomatic of the ongoing weak property market in NSW which everybody knows about but believes the NSW market has bottomed out given the increase in auction clearance rates lately.

 

That is, of course, until the RBA lifts rates by a half a percent in the back half of this year to curb rampant inflation.

Then we'll see where the bottom really is...

That could all just be my personal confirmation bias at work. I dearly would like prices to tumble.

Cheers,
Michael.

 

I think it's touch and go myself, but another .5% would be interesting. Mind you, any changes after interest rate changes tend not to have a flow-on effect for 6-9 mths down the track.

 

How many home owners are affected by the proposed increase? OK the new owners will be hit by the increase, but leave out the home owners who have paid out their loans, investors and home owners who have locked rates - what % of home loans would be affected and what would be the flow on effect.

 

The media feeding frenzy as soon as there is a rise, will ensure Michael gets the price drops he's looking for ;-) The impact of minor interest rate rises is probably more in opportunities lost for those who bail out prematurely, than in the extra interest paid

 

Carl,

Yep, the media are already all over this...

House downturn to deepen

Rate rise will hurt

Rate Rise: Here comes mortgage pain

etc etc...

Happy days!

Michael.

 

So did you fix your rates a few days ago Michael?

 

Nice one Michael - I reckon you're about 20 tabloid front page articles away from a buyer's paradise ;-)

 

Nope, but I did negotiate a 20 basis point reduction to my variable rate on all my mortgage loans. That's gone now, but at least its off the variable so if rates come down again in the future I get it back!

I'm also negotiating a reduction from 8.1% to 7.85% on my margin loan as we speak. Actually, that will probably be a reduction from 8.35% to 8.1% now... Ah well, at least I'll get to keep my current rate.

Cheers,
Michael.