Though it may be far easier to find a job in Australia, it is expected that being a home owner is expected to become more difficult. As Australia moves into an environment of declining unemployment, house prices and interest rates are rising, and some analysts say this points to signs that house prices are going to become increasingly unaffordable during the next few years.
Last week the results of housing surveys that were released suggested that residential property prices may rise by as much as 20 per cent during the next three years in cities such as Adelaide, Perth and Sydney, with other state capitals expected to post more moderate growth.
According to the results of a new survey, prices of houses located in Australian capital cities are set to remain weak. The survey which was commissioned by National Australia Bank found that the average expected annual price rise 1.5 per cent during the September quarter.
The results are similar to the result obtained during the June quarter survey, but down significantly from the 6.0 per cent expected average rise recorded during the March quarter survey.
According to the Switzerland based Bank of International Settlements (BIS) the pace at which Australian house prices appreciate will slow down, and in about 40 years will be about 30 per cent less than they otherwise would have been, largely as a result of an ageing population.
The results of the study also suggest that as the population begins to retire and starts living of their capital accumulated, which will also result in declining equity prices.
The study did however reject the assertion that retiring baby boomers will result in a crash of asset prices, but did say that capital appreciation will become much more difficult to achieve.
According to the findings of a new report, housing in Australia has gotten increasingly unaffordable over the last year, with first time buyers needing stump up 10 per more for a deposit.
The report which was released by Bankwest suggests that a couple in Australia now needs to raised $85,800 as a deposit for a median priced home, which compares with $78,100 just a year earlier.
Australian housing is becoming increasingly unaffordable, as house prices continue to surge, and interest rates maintain their upward march.
Property values in the capital cities of Australia have continued to see their values surge, with official data suggesting that house values increased by as much as 20 per cent last year.
According to the results of a survey conducted by the Housing Industry Association (HIA) and Commonwealth Bank of Australia. Housing has become increasingly unaffordable, as the effects of three consecutive rate hikes, and the rolling back of first home buyers grant have begun to take effect.
A leading mortgage broker, Australia Finance Group (AFG) believes that property investors which accounted for nearly one third of all residential mortgages last month will drive growth in the sector during 2010, replacing the traditional driver of first home buyers.
The Housing Industry Association (HIA) says Australian new home sales increased by an anaemic 0.3 per cent during the month of November, largely as a result of a lack of available funding.
The proportion of first time home buyers that are rushing to take advantage of the Federal Government’s housing subsidy before the deadline for the enhanced scheme expires on September 30th has fallen during the month of September compared with that of August, a leading mortgage broker has said. First time mortgage borrowers declined to 20 [...]