HomeMate.com.au

Australia’s conservative party focus groups  new spin, “housing affordability crisis” to describe home buyers reluctance to buy over priced homes. Australia does not have a housing affordability crisis. It has a housing and land price bubble that savvy home buyers know about and are using it too drive prices down. The Housing affordability reality. Housing [...]

As Australia’s house prices soften many would say this represents a great time to buy. That obviously depends on what happens next. Australia home values are down further in 2011, as home buyers wait to see what will happen next with mortgage interest rates and home loan exit fees. If you have to buy now, [...]

Australian homeowners and renters on hurting over mortgage rates, reduced family support, housing bubble concerns. Maybe we won’t be seeing an interest rate rise in June, even thought its likely and we predicted it last month.

Home sales fell last year to below those recorded at the height of the global financial crisis in 2008. That was when the rest of the World had a major correction in house prices and Australia missed that bath.

Hence the :dead cat bounce” analogy.
Whilst we have seen several raises in mortgage interest rates, they are hardly a concern at average mortgage rates we have and full employment, so my guess is that house prices have got ahead of themselves and until they soften further we are unlikely to see an upswing in home buyers any time soon.

In the UK the figures in a survey showed 20% of potential first-time buyers expect to be 40 years old before they buy their first house.
The trend in Britain is showing that the “typical” age of a first-time home buyer may soon increase from 31 to over 40, to up to 44. The concern then is can they then prove they can support a mortgage, as they may require to pay out the mortgage before retirement.

The Labor Party has been the driver in Banking Reform in Australia.

In fact it was always the Australian Labor Party who have reformed the banking system and opened up the mortgage industry to competition which saw the banks reduce their interest rates by over 2%. That is a lot of monthly savings for every Australian Homeowner with a mortgage.

Late last year, Mr Swan announced a bank reform package, including banning price signaling between banks and scrapping bank exit fees, in a bid to lift competition.

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. [...]