December 2010
No upside seen for US house prices with worse to come in 2011
December 30, 2010 by Editor · Leave a Comment
Home prices are dropping in the US largest cities and are expected to keep falling next year, as fewer people purchase homes and millions of foreclosures come on to the market.
The Standard & Poor’s/Case-Shiller 20-city home price index released Tuesday fell 1.3 percent in October from September.
With the impending USA Alt-A and Option ARM mortgage crisis looming in 2011 the US market predictions are not good. (more…)
Australia’s property market strength set to fade in 2011 under weight of rising rates: international report
December 30, 2010 by Editor · Leave a Comment
The Australian property market has been one of the strongest in the world in 2010, according to a new study, but is predicted to slow into 2011 under the weight of higher interest rates.
The Global Real Estate Trends report, released by Canada’s Scotiabank, tracked housing markets in 12 advanced economies throughout 2010.
It shows that home prices increased in six nations including Australia, Canada, France, Sweden, Switzerland and the United Kingdom. (more…)
Homelessness falls off the Australian Federal Government radar in 2010
December 29, 2010 by Editor · Leave a Comment
There are concerns homelessness has fallen off the Gillard government’s radar, with welfare groups questioning its commitment to the cause.
The peak body working to prevent homelessness says rates have been on the rise, and the government is not on track to meet its target.
U.S. Home Prices Fall Again In Late 2010
December 29, 2010 by Editor · Leave a Comment
A new bout of declining home prices is threatening to hamper the U.S. recovery, just as consumers and the overall economy have been showing signs of healing.
Home prices across 20 major metropolitan areas fell 1.3% in October from September, the third straight month-over-month drop, according to the S&P/Case-Shiller home-price index released Tuesday. Many economists expect the declines to continue into at least next spring, erasing most of the gains made since prices bottomed out in early 2009.
The housing market, which appeared poised for a recovery earlier in the year, now could be heading for a second downward drift. (more…)
Investor alert Aussie market busting. QLD property prices at 2001 levels, Gold Coast beachfront values have plunged 50%
December 27, 2010 by Editor · Leave a Comment
The price of units in the Far North has hit rock bottom, Cairns real estate experts say. Reduced demand for investment properties has driven unit prices down as far as $55,000, for the first time in nearly nine years.
Yes buyers can now buy units in Cairns for 2001 prices! Gold Coast beachfront values have plunged by as much as 50 per cent since the peak of the boom in 2008, states The Australian Newspaper Online.
This is evidence that some parts of the Australian market is indeed ‘busting‘. This is against a backdrop of anticipated rising interest rates in 2011. Hold on to your hats the boom is over and the bust is here.. (more…)
Foreign lenders fear Australia’s mortgage finance system and global fund manager compares Aust to Ireland
December 26, 2010 by Editor · Leave a Comment
Aussie banks, once held up as the envy of the world, are now at the mercy of foreign lenders.
Despite the Federal Government’s measures to boost competition in the banking market, little has been done to address the huge reliance on overseas lenders to fund our mortgage market.
Official figures show our banks now owe overseas investors a record $352.7 billion, equivalent to 27 per cent of the country’s entire economic output. (more…)
NSW Affordable Rental Housing SEPP Review
December 24, 2010 by Editor · Leave a Comment
For many Australians, one of the most significant challenges is their ability to afford to rent or purchase a home in the areas in which they work and want to live. As a result of high property prices and rent levels, New South Wales residents face the greatest challenge.
The NSW State Government is directly responding to growing community concern about the long term decline in the availability of affordable rental housing. (more…)
$20m boost for affordable rental housing in the ACT
December 24, 2010 by Editor · Leave a Comment
The ACT Government has given in-principle agreement to provide an additional $20 million to the not-for-profit community housing provider CHC Affordable Housing, to increase the availability of affordable rental homes.
Chief Minister and Minister for Land and Property Services Jon Stanhope said today the money would finance affordable rental properties in Crace.
“The $20 million extension to CHC’s existing $50m loan facility will be applied to increasing the number of affordable rental properties in the (more…)
Australian Home Loan Arrears Worsening Rates Rising More Pain To Come
December 24, 2010 by Editor · Leave a Comment
An analysis by Fitch Ratings of a much larger pool of home loan arrears data than used previously shows that as of September 2010 one per cent of borrowers were one month or more behind on their scheduled balance.
Fitch said that since delinquent borrowers tend to have above-average loan balances (more…)
Angry Gold Coast investor pleads for price-fixing probe
December 23, 2010 by Editor · 1 Comment
A family blamed in part for the collapse of a top real estate agency has issued a plea to the Ray White national chairman, Brian White.
They want him to investigate an alleged price-fixing scheme that affected the values of multi-million-dollar properties on the Gold Coast.
The collapse of Ray White Broadbeach, which was placed in receivership on Tuesday with debts of up to $5 million, follows a severe market downturn (more…)
Affordable Aussie housing an illusion under Federal Labor
December 23, 2010 by Editor · 1 Comment
Labor’s failure to provide adequate land for development and affordable rental housing is causing more pain for prospective homebuyers and renters, said Shadow Minister for Housing, Senator Marise Payne.
“Home borrowers are already struggling with higher loan servicing costs under Labor and the Government’s failure to build enough affordable rental accommodation has hit renters in the hip-pocket,” Senator Payne said.
“The Rudd-Gillard Government has clearly failed when only five per cent of houses under the National Rental Affordability Scheme have actually been built (more…)
Borrowers Reject Australian Government Bank Reforms
December 23, 2010 by Editor · Leave a Comment
A recent consumer survey has indicated that Australian borrowers are disappointed about new lending laws and they do not believe the legislation goes far enough to make lending more competitive.
The vast majority of borrowers believe that the Big 4 banks will continue to act as they always have.
- 8 in 10 home borrowers say the planned bank reforms do not go far enough
- Less than 2 in 10 think the reforms will keep home loan interest rates down (more…)
More West Australians are losing their homes in 2010
December 22, 2010 by Editor · Leave a Comment
Property repossession has risen in WA after startling figures released yesterday showed that residents were struggling to make mortgage repayments.
In contrast to the state’s booming economy, West Australians topped the nation as the worst mortgage performers after parts of state were found to have almost doubled the rate of loans in arrears by 30-plus days.
However the bad news doesn’t end there according to the Western Australian Council of Social Service (more…)
Consumer weakness to prevent Aussie rate hikes in 2011
December 22, 2010 by Editor · Leave a Comment
Continued weak consumer spending will deter the central bank from raising the cash rate for at least the first few months of 2011, economists say.
With weak consumer spending, Australian mortgage delinquencies increasing considerably and a flat Aussie property market, 2011 is shaping up to be a year of market consolidation. If the US mortgage market experiences another downturn in 2011 and causes credit tightening in Australia, it will be an interesting time indeed. (more…)
Rising interest rates drive delinquencies in Australia
December 22, 2010 by Editor · Leave a Comment
Australian mortgage delinquencies increased considerably in the year to September as interest rate increases hit households, according to a report by Fitch Ratings.
By September, one per cent of home loan borrowers by number were one month or more behind on repayments, up from 0.81 per cent a year earlier, Fitch said in a report released on Tuesday.
By value, the delinquency rate rose to 1.54 per cent from 1.23 per cent from a year earlier. (more…)
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