Top 5: Finance & property quotes week commencing November 10

By the resi financial blog team, 17 November 2014

Top 5: Finance & property quotes week commencing November 10

Moderation seems to be the flavour of the month, with residential property price growth stabilising, financial markets improving at a maintainable pace and new housing construction flexing its muscles to bring stock to the market.

#1. Christopher Kent, Assistant Governor (Economic) of the RBA in a November 13 address to the Australian Business Economists spoke about how the trend for economic growth for Australia has been moderate to date, but should improve in the near future.

"Growth over this financial year is likely to remain below trend, but our forecast is for growth to pick-up gradually to an above-trend pace by 2016. There are already signs of better growth in some parts of the non-mining economy, supported by the very low level of interest rates," said Mr Kent.

#2. Commenting on September quarter figures released by the Australian Bureau of Statistics (ABS), Real Estate Institute of Australia President, Peter Bushby, made the following statement on November 10: 

"In trend terms, the number of new dwellings purchase commitments increased by 1.7 per cent while new dwelling construction decreased 0.2 per cent and the purchase of established dwellings decreased by 0.3 per cent. The value of investment housing commitments again increased but by 1.7 per cent."

#3. Master Builders' Deputy Executive Director, Paul Bidwell spoke on November 10, further highlighting the strength of the residential construction sector, and its effects on the broader economy.

"As expected, south east Queensland is the powerhouse at the centre of the building recovery, recording strong approvals through the year to date, despite a softening during September," Mr Bidwell said.

"However, we are closely watching centres like Cairns, which have the potential to pick up even further as confidence boosts. In Cairns a strong pipeline of upcoming commercial and residential developments is proving to be the shot in the arm the industry needs." 

#4. Head of the Domestic Markets Department for the RBA, Chris Aylmer, spoke to the Australian Securitisation Conference in Sydney on November 11. In his remarks he made the following statement:

"In comparison with its overseas counterparts, the Australian securitisation market, which remains predominantly [a Residential Mortgage-Backed Securities] market, has experienced a strong recovery over the past couple of years, albeit not to pre global financial crisis levels. Issuance started to pick up in late 2012, reached a post-crisis high in 2013, and has remained high since then."

Mr Aylmer elaborated saying that, "This mainly reflects the strong performance of Australian residential mortgages and the high quality of the collateral pools which are primarily fully documented prime mortgages."

#5. Housing Industry Association Senior Economist Shane Garret commented on November 11 that the moderating market showed a move towards sustainable growth for the industry, which he speculated should mitigate the need for monetary policy intervention for the time being.

"Today's figures are a welcome addition to the suite of home price data which show that price growth is easing to a much more sustainable rate," said Mr Garrett. 

"The annual rate of home price growth nationally is back in single figures for the first time in a year," said Mr Garrett. "At the same time, new home building is stretching to its busiest year in two decades. This is no coincidence," stated Mr Garrett.


Categories: Financial Services, Home Loans