Welcome to the property news for the week.
This week, there is growing suspicion that the RBA will cut rates this year
`”We think that Australia’s deepening housing downturn will result in below-potential [gross domestic product] growth and force the RBA to cut interest rates later this year.”
In addition, new ABS data indicates that there has been a decline in new home building, no doubt caused by tightened lending standards.
The media has been talking about how easier it has become for buyers (only just, though), a topic of focus in news.com.au this week: ‘Buyers can’t be overconfident of snaring a bargain in slow market, expert says’
Melbourne is definitely seeing a buyers market, more so than Sydney, where even in the current correction house prices remain above average globally.
Whilst the news has not been great, it is interesting to see how headlines can be written to stir emotion. From the AFR: Property price falls could double: Morgan Stanley
Reading the headline might make you think that they are now hovering around 40%. But it’s not. Here is the information: ‘Previous expectations for the property declines generally ranged from 10% to 15%, however these days most projections are for a fall of between 15% to 20%.’ Still significant, but not a new piece of information.
For some practical information this week, check out Smart Property Investment’s Top 6 property resolutions for 2019
Finally, here is an interesting piece on how the tech industry has affected property: How the FAANGs have influenced Australia’s property landscape
Have a great week everyone!
