Top 5: Finance & property quotes week commencing December 1

By the resi financial blog team, 08 December 2014

Top 5: Finance & property quotes week commencing December 1

The last week has seen strong interest in the increasing affordability of homes, as well as trade agreements and other business-related policy. With the holidays and the new year fast approaching, it seems many are trying to secure their place in the market before taking a well-deserved break.

#1. On December 3 CEO of the Real Estate Institute of Australia (REIA) Amanda Lynch noted the affordability of housing across the country had improved, although it may not be apparent to all home buyers. 

Ms Lynch said, "Although, in some states, potential buyers probably don't feel that real estate is within their reach given the recent price surges in Melbourne and Sydney, nationally affordability is improving and we are seeing significant and welcomed first home buyer activity in WA."

#2. Speaking about the same figures, CoreLogic RP Data research analyst Cameron Kusher noted on December 1 that although housing values had seen a solid increase over 2014, they had not outstripped the phenomenal growth experienced in the previous year.

"With just one month left in 2014 it is looking as if this year will see a lower level of capital growth than last year. This year home values have risen by 7.0 per cent compared to growth of 9.8 per cent in 2013," said Mr Kusher.

#3. Master Builders' deputy executive director, Paul Bidwell released a statement on December 5 discussing the trend for housing construction in 2015. He noted that other areas of construction had not fared well, but that the residential building sector continued to preform admirably.

"Unfortunately, affordability of new housing will remain an ongoing problem for the industry over the longer term. This is despite the fact that it has improved slightly over the last 12 months thanks to lower mortgage rates," said Mr Bidwell.

"As with previous years, renovation activity will remain solid and we anticipate the high cost of buying a new home will continue to encourage many owners to stay put and renovate rather than sell and upgrade to a new home."

#4. Amanda Lynch of the REIA also spoke this last week on the effect of the Harper Review on small businesses, especially in the area of intellectual-property bullying by bigger companies.

 "The experience of REIA and others is that big business trademark grabs not only have a major adverse impact on competition, particularly for small business but they are deliberately used to reduce competition - which is something we strongly oppose," said Ms Lynch on December 4.

#5. According to a December 4 statement by Trade and Investment Minister Andrew Robb, a pickup in resource and manufacturing exports has led to significant reduction of the trade deficit for October. Mr Robb noted that, moving forward, the big effects on Australian trade will be from the recently signed trade agreements.

said new data released today shows a surge in resource and manufacturing exports has led to a sharp narrowing in the trade deficit for October.

"The benefits of those agreements will begin flowing through the economy soon, with the Korea-Australia Free Trade Agreement coming into force on 12 December," said Mr Robb.

"KAFTA is expected to result in an annual boost to the economy of close to $650 million when fully implemented.  It's also projected to create many thousands of jobs over the next decade."

Categories: Business Owners, Home Loans