Buying property? Then this blog is for you!!

This blog helps the property buying community to more easily share strategies, stories and helpful tips. It is an open blog. Anyone can join, contribute and invite others to join.

If you would like to talk property, please contact us:
Office: 1300 911 576
Martyn Fleming: 0400 000 822
Guy Clarke: 0409 055 128
E: enquiries@morpheusproperty.com.au
W: www.morpheusproperty.com.au
_________________________________________________________________

02 January 2011

Australian House Market Strongest in the World


Below is a recent article from the Courier Mail. It's one of many recent articles describing Australia's strengthening economy, currency and housing market.

This particular article gives another modest prediction for interest rate rises in 2011 at 75 basis points - compared to earlier predictions, this is good news for current home owners and investors.

Also encouraging are the other 'good news' stories of individual economic recoveries around the world, showing signs that we're well and truly starting to shake the GFC!

AUSTRALIA experienced one of the strongest housing markets in the world during 2010, new research shows.

But likely interest rate hikes will slow the market in 2011, the Global Real Estate Trends report predicts.

The report, released by Canada's Scotiabank, tracked the housing markets in 12 advanced economies throughout 2010.

Home prices increased in Australia, Canada, France, Sweden, Switzerland and the United Kingdom.

They remained flat in Germany and the United States, and fell in Ireland, Italy, Japan and Spain.

Australia led the pack, thanks to relatively low unemployment and tight housing supply.

But interest rate hikes and a cut to the first homeowners grant slowed a "red-hot" property market in 2010 to some degree, the report said.

Economist Adrienne Warren anticipates the Reserve Bank of Australia will lift interest rates by an additional 75 basis points in 2011.

Australia's close trade ties with Asia and resource wealth would continue to underpin a solid pace of domestic activity.

"Higher interest rates will worsen already strained affordability," Ms Warren said in a statement.

Canada's market also fared well, but was "one of the most volatile" expected to be tempered by more moderate employment and income growth in 2011.

The UK property market staged a strong early-year recovery while Germany's decade-long housing slump also came to an end.

But it was a different story in Spain, Ireland and Italy, where the market continues to fall.

Japan's two-decade long property slump continued in 2010, and is expected to slump further in 2011 on the back of a weaker economy.

The surprise result came from the US where the housing market stabilised.

That trend is expected to continue, with the report predicting the US Federal Reserve to maintain its record-low 0.25 per cent rate through the end of 2011. Link to article>>



1 comment:

Wenzy Shieff said...

We have to ensure that we resolve the way our business should be. Secure things for our business by developing a plan that will enhance our property agent skill more better. Decide what we think is right for our business to ensure that our future will stay brighter for us.

Real Estate Investment