Spring is nearing - and as always Sydney and Melbourne house prices will be keenly watched. Record low interest rates are set to continue with almost no possibility of a rate rise. Markets are expecting a further cut in November after the September quarter CPI data is published. This presents a runway for a lift off in house prices unless there is oversupply in the market. Spring traditionally is a good time for both buyers and sellers and if there are not enough supply, house prices are set to rise. However if there is oversupply, then buyers can force the prices down and the market analysts seem divided as to the outcome. The recent winter auction clearance rates in Sydney has been strong with 86% clearance in the week up to 21 August while it was 76% for the same period in Melbourne. The CoreLogic RP Data index shows Sydney prices rose 3.34% for the quarter and 9.06% for the year. Melbourne prices went up by 2.61% for the quarter and 7.27% on a yearly basis. A fall in house prices in Sydney and Melbourne could bring forward recessionary pressures in the economy and therefore will be keenly watched as Spring approaches.
MARKET DATA
| Australia Cash rate Australia 90 day bank bill Australia 10 y bond US 10y Govt bond AUD/USD AUD/EUR AUD/JPY AUD/CNY ASX 200 S&P 500 Dow Jones Industrial Average Shanghai Composite Brent Oil (USD per BBL) Gold Spot (USD per oz) Iron Ore | As at 19-Aug 1.50 1.75 1.90 1.59 0.7644 0.6744 76.63 5.0794 5,523 2,183 18,552 3,108 50.51 1,337 61.60 | As at 12-Aug 1.50 1.75 1.86 1.51 0.7691 0.6903 78.50 5.1103 5,530 2,184 18,576 3,050 46.97 1,337 60.37 |
RSS Feed