Top 5: Finance & property quotes week commencing October 6

By the resi financial blog team, 13 October 2014

Top 5: Finance & property quotes week commencing October 6

The last week has been one that has seen many investors, business owners and home owners twisting in their seats, anxious to see the stock markets stabilise and the Reserve Bank of Australia (RBA) to take a firm direction one way or the other. Industry speculators and market watchers alike have welcomed a stabilisation of home prices and a seeming end to the volatility in the stock market.

#1. "The August 2014 lending figures indicate a very stable market with a slowdown in investor activity which should ease the RBA's recent concerns over a surge in investor activity that has prompted discussion over the use of macro-prudential controls," said REIA President, Peter Bushby, when discussing how low investment rates for August, and limited price growth, should reign in the RBA's speculation on using macro-prudential tools.

#2. Recent volatility in the stock market has given investors a scare, but is expected by most to have reached its natural end. "For a lot of our customers this is great news, while volatility can scare investors it is a trader's best friend," CMC Markets chief market strategist Michael McCarthy told AAP​ on October 10.

#3. Glenn Stevens, governor of the RBA in his October 7 release, in which he detailed the rationale behind keeping the overnight cash rate at its all-time low of 2.5 per cent for a 14th consecutive month. "Monetary policy remains accommodative. Interest rates are very low and have continued to edge lower over recent months as competition to lend has increased. Investors continue to look for higher returns in response to low rates on safe instruments. Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets. Dwelling prices have continued to rise over recent months."

#4. In discussing a four month period of expansion in the construction industry, Australian Industry Group Director - Public Policy, Peter Burn, said: "Continuing strength in house and apartment building and a consolidation of improved conditions in commercial construction outshone a further, modest contraction in engineering construction in September." This is the strongest pace of expansion experienced by the sector in the 9 years that Ai Group has been running the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI).

#5. Master Builders' Deputy Executive Director, Paul Bidwell speaking on October 10 about the effect blanket financial policy adjustments could make to the Queensland residential building recovery: "While we recognise the potential problems with the growth in investor loans, we would hate to see any curbing of bank lending to housing applied nationally and would anticipate that any actions taken would be targeted to those markets under pressure."

Categories: Business Owners, Financial Services, Property Investment