Slow-road-to-returning-confidence
11th June 2009 | category [ Articles ]
SLOW ROAD TO RETURNING CONFIDENCE
There is talk of confidence returning to the market place, but
figures just released show past months not travelling so well
The ANZ Banks survey of job advertisements which was released this week showed a fall
for the 13th consecutive month. The result now indicates a reduction across those jobs
advertised on the internet and newspapers of 49.9% during the last 12 months.
Results for May suggest that each state and territory except Tasmania and Western Australia
recorded a decline during the month. These results were to be expected given that consumer
and business confidence remained at very low levels through the month of May.
Housing finance commitments data released this week found that first home buyers as a
percentage of all owner occupied finance commitments increased to 28%, the highest on
record. The interesting detail to note within the statistics is that in each state and territory
the actual number of finance commitments for first home buyers fell, except in Victoria where
they recorded an increase of 0.9%.
The greatest fall in first home buyer finance commitments was witnessed in Tasmania
where they fell 26.1% in April compared to the previous month. These results lend credence
to a number of reports that suggest first home buyer demand may have peaked. In saying
this, first home buyer finance commitments have still witnessed an exceptional increase
on an annual basis in each state and territory varying between a 50.3% increase in Western
Australia and a 123.4% increase in the Australian Capital Territory.
This same data also shows that during April 2009 commitments for investment property
accounted for 25.5% of all finance commitments. Although this figure remains low on a
historical basis, it represents a marked increase on the March 2009 figures when investor
finance accounted for just 24.1% of all commitments.
A great deal of first home buyers are now struggling to get a pre approval on finance let
alone getting formal approval. There is such a backlog of loan applications many are going
to find that time is going to run out before they get formal approval on their finance and
have the opportunity to buy, and thus receive the grant. keep in ming the grant will begin
to wind back in October
via RP Data Property Pulse