Top 5: Finance & property quotes week commencing 16 March

By the resi financial blog team, 23 March 2015

Top 5: Finance & property quotes week commencing 16 March

There were some interesting insights into the property and finance worlds this week, with commentary stretching across everything from interest rates and vacancy rates, to sales and the changing nature of Australia's housing market. Here is a round up of the top five quotes from the past week.

#1. The Reserve Bank of Australia made few waves when it kept the cash rate steady at its board meeting earlier this month, but the minutes released on Tuesday give further context behind the decision - and point to a possible cut on the horizon. 

"In considering whether or not to reduce the cash rate further at this meeting, members saw benefit in allowing some time for the structure of interest rates and the economy to adjust to the earlier change," RBA Governor Glenn Stevens said. 

#2. In what should be reassuring news to landlords across most of the country, SQM Research has revealed that residential vacancy rates took a dive in February. The figure dropped from 2.3 per cent down to 2.2 per cent over the month, but Managing Director of SQM Research, Louis Christopher, said the number of vacancies could rise again over the year. 

"While unemployment fell slightly in February, a slowing Australian economy overall will likely place greater upward pressure on the nation-wide vacancy rate though 2015," he said in a March 17 release.

#3. CoreLogic RP Data released research on March 16 into whether lower mortgage rates will put a spring back into buyers'. While house sales and values haven't been quite as strong over the past year or so, the research noted that further interest rate cuts could buoy purchasing activity once more. 

"With mortgage rates moving lower in February 2015 and expected to reduce further during 2015, there may also be a rebound in sales activity," it said.

"Despite a potential rebound, transaction volumes are likely to remain below historic peaks."

#4. The number of sales might be evening out slightly, but CoreLogic RP Data Auction Market Specialist Robert Larocca said auctions are becoming an increasingly popular method of selling property across the country. The number increased in all the capital cities over the week ending March 22.

"With full data now available for 2014 it is clear that the proportion of sales by auction increased in each capital city when compared to both 2013 and 2012," Mr Larocca said. 

"The use of auctions traditionally grows with prices and competition as vendors and agents seek to take advantage of the rising market."

#5. In a report named The Changing Composition of Australia's New Housing Mix, the Housing Industry Association (HIA) has highlighted a few trends in the property market from the past 20 years. Among others, it points to the rise multi-unit dwellings as signalling a shift in the Australia psyche.

"'Multi-unit' dwellings are now a far more significant part of the new home building market than at any other point in Australia's history," the report said.

"It is a different new housing profile to what we're historically accustomed to." 

Categories: Property Investment