Australia-leads-the-way
Following the RBA’s Board meeting this week it was announced as expected,
that the cash rate would remain on hold at 3.0%. This was a
predictable outcome given a number of positive data releases over recent weeks.
In the RBA Governor’s statement he noted that, “The prospect of inflation
declining over the medium term suggests that scope remains for some
further easing of monetary policy, if needed.“No doubt the RBA took into
consideration the improving conditions in Australia’s real estate market.
Released last week the RP Data-Rismark Monthly Indices Release reported
that home values in all mainland capital cities except Perth have recorded
growth during the first four months of 2009. Darwin (5.3%), Melbourne
(4.4%) and Sydney (3.9%) lead the way in terms of value growth and
nationally, property values have risen by 2.8% during the first four months
of 2009.
There was a variety of other data releases relevant to the property market
this week whilst the share market appears to have also turned a corner
with the S&P/ASX 200recording its highest value of the year during the week.
Meanwhile, the Australian dollar has rebounded strongly against the US
dollar and now sits above the 80 US cents barrier.Building Approvals data
to April 2009 released by the ABS this week showed that the most recent
month saw a strong rebound in new dwelling approvals. Comparing March
2009 to April 2009 saw an increase in building approvals of 7.5% with
monthly approvals sitting at their highest level since October 2008.
Data released by Fitch Ratings this week found that mortgage arrears
have fallen during the first quarter of 2009 and this was the first time in 10
years that the first quarter of a year had witnessed a fall compared to the
final quarter of the previous year. According to their index, delinquencies of
more than 30 days decreased to 1.52% during the first quarter of 2009,
compared to a rate of 1.75% in the final three months of 2008.
Locally there is still an under supply of good homes for sale under $300,000.
It is interesting to see home prices locally also, are growing at a rate of
around 2% whilst prices overseas still falling, some by as much as 20%.
It gives faith in the Australian system, and might encourage employees
seeking employment to look to local employers, because I do believe that a
lot of Aussie jobs have been lost not to local employers, but large overseas
companies employing locally. These are the reasons Australia is suffering
some of the backlash of this global recession.
RP Data Sourced