As other countries struggle to get a grip on

the economy, Australia is way ahead when

it comes to consumer confidence

It was certainly an exciting week for property related data releases this week

with the RBA Board having their monthly meeting, Westpac and the Melbourne

Institute releasing their consumer confidence figures and the ABS releasing its

housing finance data as well as the latest labour force statistics.

As expected, following the RBA Board Meeting it was announced that the official

cash rate would remain on hold this month at 3%. This was the third month in a

row that the RBA has made no adjustment to rates and although the Reserve

Bank Governor maintained there is still scope to reduce rates, the move to leave

rates unchanged was supported by the positive data which was released

following the RBA’s meeting.

The Westpac-Melbourne Institute’s Consumer Sentiment figures signaled growing

confidence in the Australian economy, with their index recorded at 109.4 points

during July. This was the second month in a row the index was above 100 points

indicating that economic optimism was outweighing pessimism. The results were

extremely encouraging given that just two months ago the index was recorded

at 88.8 points indicating a strong pessimism towards the economy. The last two

months has seen the index jump by 12.7% in June and 9.3% in July.

Housing finance data was also released this week and it showed that finance

commitments for both owner occupied and investment housing has again increased

during May 2009. During 2009, seasonally adjusted figures show that owner

occupier finance commitments are up 23.5% and investment finance commitments

have risen 10.9% and now match levels last witnessed during July 2008. 29.5%

of all owner occupier finance commitments were taken on by first home buyers;

up from just 17% a year ago. The number of first home buyer grants issued in

May and June were at record levels, suggesting that first home buyer demand

is not yet winding back.

Balancing the positive news, unemployment figures from the ABS show that the

jobless rate has increased again and now sit at 5.8%. The Federal Government

is forecasting the unemployment will rise to 8.5% by mid next year. With the

recent economic data painting a brighter picture than most economists had

expected it may turn out that the rate of unemployment does not rise this high.

Locally the rental market is still suffering with the vacancy rates in our local area

being zero. Some tenants are now offering to pay above market rent and are

also offering to pay up to 12 months in advance.

Sales are slow, not because of lack of buyers, but because of lack of property for sale.

We have virtually sold everything we have in stock. Agents in this area (not the locals)

are now over quoting sale price to vendors to get them to list with that agent.

It is an old tactic called "buying the listing". many people employing these agents

could end up  being disappointed with their final selling price.

www.nobullrealestate.com.au

RPData Property Pulse

 

10/07/09