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Illawarra Real Estate News
| 26 Feb 2010 - House prices set to rise by 8pc across the nation |
Australian Property Monitors economist Matthew Bell said the resilience in the market would remain until home loan interest rates reached 7.5-8 per cent -- probably late this year or early next year.
"I don't think it will be as strong as last year, but the market will still be relatively strong," Mr Bell said.
Auction clearance rates were expected to remain stable, he said. Last weekend, 67 per cent of the homes that went under the hammer were sold in Sydney, while 66 per cent were sold in Melbourne.
Some of Australia's biggest companies are banking on the recovery. On Wednesday, Stockland, the country's largest residential developer, reported a $214 million profit for the first half of the financial year, compared with a $727m loss for the same period last year.
Stockland signed a record $408m worth of housing lot contracts in the six months to December 31 on the back of last year's historically low interest rates and the boosted first-home buyers grant, which has since returned to its original levels.
Stockland managing director Matthew Quinn said that, although the company's sales were already above the previous residential market peak, in 2004, he expected the recovery to be "sustainable".
Purchasers could withstand further interest rate rises, Mr Quinn said, but at a certain point they would stop buying.
"I guess that point would be another 0.5 or 0.75 per cent increase in interest rates," Mr Quinn said.
The undersupply of housing and the return of upgraders and investors would underpin the market, he said.
BIS Shrapnel senior economist Jason Anderson said the lack of new building and the influx of migrants had led to a mounting housing shortage.
"We estimate the national shortage will reach about 150,000 dwellings, concentrated in NSW, where there is an 84,000 shortage," Mr Anderson said.
The supply of new homes would improve during the year, as housing approvals recovered, he said.
Right Choice Real Estate News.......
This information is obtained from various sources and cannot be guaranteed. You must make your own enquiries as to its accuracy.
"I don't think it will be as strong as last year, but the market will still be relatively strong," Mr Bell said.
Auction clearance rates were expected to remain stable, he said. Last weekend, 67 per cent of the homes that went under the hammer were sold in Sydney, while 66 per cent were sold in Melbourne.
Some of Australia's biggest companies are banking on the recovery. On Wednesday, Stockland, the country's largest residential developer, reported a $214 million profit for the first half of the financial year, compared with a $727m loss for the same period last year.
Stockland signed a record $408m worth of housing lot contracts in the six months to December 31 on the back of last year's historically low interest rates and the boosted first-home buyers grant, which has since returned to its original levels.
Stockland managing director Matthew Quinn said that, although the company's sales were already above the previous residential market peak, in 2004, he expected the recovery to be "sustainable".
Purchasers could withstand further interest rate rises, Mr Quinn said, but at a certain point they would stop buying.
"I guess that point would be another 0.5 or 0.75 per cent increase in interest rates," Mr Quinn said.
The undersupply of housing and the return of upgraders and investors would underpin the market, he said.
BIS Shrapnel senior economist Jason Anderson said the lack of new building and the influx of migrants had led to a mounting housing shortage.
"We estimate the national shortage will reach about 150,000 dwellings, concentrated in NSW, where there is an 84,000 shortage," Mr Anderson said.
The supply of new homes would improve during the year, as housing approvals recovered, he said.
Right Choice Real Estate News.......
This information is obtained from various sources and cannot be guaranteed. You must make your own enquiries as to its accuracy.