HomeMate.com.au

Master Builders Australia, the peak building and construction industry, has called on the banks to pass on in full the 100 basis point reduction in the cash rate by the central bank. The group said there is no case for the banks to withhold the benefits of lower interest rates to both households and builders. [...]

The housing market is going nowhere, and this is affecting new home sales as people shelve their plans to build a new home, that was to be financed from the sale of their existing home.
It looks like this situation will continue as home prices are under pressure to fall further in 2011.

The number of properties sold in Brisbane has slumped by 18.6 per cent in the past 12 months – the worst property market decline recorded in Australia. Sales were down 10,000 compared with the same period last year. Just 40,868 homes changed hands during the year, compared with 50,211 in the 12 months to October [...]

Mr Mortgage says that lower future homeownership levels are seen as part of a trend that he feels can be reversed if the root causes are addressed.
What has to happen is that the dream of homeownership needs to be resold to an older first home buyer that is now entering the market, and entry needs to be made easier.

We have a housing shortage and we need more residential construction and the Government needs to ensure that. Home buyers need an incentive to build rather than buy established to get more homes. Its not rocket science.

Anytime is a good time to buy a house that is well priced and what you need to live in, and is affordable, if you intend to live there for more than 5 years. If not its better to rent and invest the savings and housing costs. If you are an investor, there are better places to park your money.

Many homeowners are considering moving into the property investment market for the first time as property rental yields rise. Before making any decisions in this area you need to consider your financial position and your financing options and