Housing Prices Up Slightly in June Quarter: Is This the Beginning of a Trend?
Australian mortgage broking firm, The Mortgage Gallery Rockingham, analyses the report and discusses ramifications for home buyers.
Perth, Western Australia (PRWEB) November 05, 2012
According to the Australian Bureau of Statistics, from a study using a weighted average of the eight capital cities, house prices went up 0.5% in the June quarter after a 0.1% drop in March. The prices fell 2.1% over the year to June, after analysts had predicted a 4.2% fall. The index was computed using the prices of established, detached houses in the eight cities.
Of the eight capitals, Darwin showed the largest gain for the June quarter at 5.1%, and the year through June at 12.3%. Perth came in a distant second with 0.6% for the quarter and 1.1% for the year. Canberra had the greatest decline for the quarter, with -1.3%, while Melbourne had the greatest decline for the year, with -4.8%.
Economists have stopped short of predicting a recovery, but were encouraged by the results. ANZ Bank property economist David Cannington was conservative in his approach, saying, “It's still too early to call a turnaround in house prices, because of…weak sales activity in the market.” Cannington was talking about Australia as a whole, but house sales rose 23.5% in June in Western Australia, compared to the national growth of 0.7%. This could change the outlook for WA compared to the rest of the country.
Justin Smith, Principal of The Mortgage Gallery Rockingham, who broker home loans in the Rockingham, Cockburn, and Kwinana areas, is cautious but optimistic at the same time: “Mr Cannington was correct in being very cautious for Australia's overall market, but here in Western Australia, it's an entirely different situation. One of the main factors he cites, sales activity in the market, rose sharply here this June, and we believe it is the beginning of movement toward full recovery.”
Smith continued, “We have a better economy in Western Australia than they do in the rest of the country. We have seen every economic indicator move toward pre-crisis levels except the housing market. When there are plenty of jobs that pay enough for people to live, and population is growing, it's almost impossible for the housing market not to follow the rest of the economy.”
Smith was asked how it affected potential home buyers in Western Australia, and was very optimistic for both the present and the future: “Right now, Western Australia is a “sweet spot” for home buyers. There are plenty of jobs, a decent amount of money, and the interest rates are going down slightly, but the prices haven't gone up commensurate with the rest of the economy. It's as if every factor that needs to be high for a buyer's market is high, and every factor that needs to be low for a buyer's market is low.”
Smith concluded: “If I didn't have a house and planned on buying one, I would do everything I could to take advantage of the market now. We really don't know how long the market is going to stay like this, but we know that it is very good for buyers now.”
The Mortgage Gallery Rockingham is a trusted mortgage broking firm that helps buyers find home loans in the Kwinana, Cockburn, and Rockingham areas. They work with an extensive network of banks and lending institutions, large and small, and are experts at matching the right banks with the right customers. If you would like more information, their website is located here: http://www.mortgagegalleryrockingham.com.au/. You may also call them at 08 9527 1800.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/11/prweb10072366.htm