Top 5: Finance & property quotes week commencing 6 April

By the resi financial blog team, 13 April 2015

Top 5: Finance & property quotes week commencing 6 April

In the week gone by, commentary in the finance and property industries was all a flurry. Conversation circled back around to interest rates once more after the Reserve Bank of Australia (RBA) announced its decision to keep the official cash rate stable for another month, while other topics included to lending, growth in the rental market and housing affordability. Here is a break down of what has been said. 

#1. As mentioned, the RBA has kept the housing industry on edge for the second month in a row, maintaining the official cash rate at 2.25 per cent and fuelling more speculation about when they'll make another cut. Governor Glenn Stevens once again hinted that a trim might be possible in the months ahead, but the announcement was fairly similar to the statement made in March. 

"Further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target," he said. 

"The Board will continue to assess the case for such action at forthcoming meetings." 

#2. The Housing Industry Association (HIA) voiced its disappointment at the bank's decision, noting that an early cut would add further momentum to the building sector and the economy as a whole. However, HIA Chief Economist Harley Dale made clear that a rate cut would not be the solution to every economic problem. 

"That having been said, we have long recognised that interest rate cuts are no panacea for improving Australia's economic health," he said in an April 7 statement.

"Governments need to step up to the economic reform plate."

#3. Research from CoreLogic RP Data has shown that rent prices have increased consistently over the three months to April 2015, but the rate has been relatively low compared to blossoming home prices. Nonetheless, analyst Cameron Kusher noted that while the rental market has seen a slow down, the last quarter recorded solid rises. 

"Given the softer conditions recorded across the capital city rental market towards the end of 2014, rental growth over the first quarter of 2015 has been relatively strong at a capital city level," Mr Kusher said in an April 9 release. 

#4. After examining recent housing finance figures from the Australian Bureau of Statistics, the Real Estate Institute of Australia (REIA) said the property industry's concerns about the expanding market should be eased somewhat.  

"The February 2015 lending figures indicate a market that is moderating with February being the fifteenth consecutive month of modest drops in lending levels if refinancing is excluded," REIA President Neville Sanders said in an April 10 statement.

"With moderating housing lending and GDP growth below trend, the concerns of an over heating property market should be laid to rest."

#5. Master Builders Australia has applauded the move by state and federal treasurers to improve housing affordability for all Australians. CEO Wilhelm Harnisch pointed out that removing unnecessary regulations and increasing housing supply will give homebuyers a big boost, 

"The availability of adequate affordable, and appropriate housing is a fundamental pillar underpinning our social and economic wellbeing as a community," Mr Harnisch said in an April 10 release. 

Categories: Home Loans, Property Investment