HomeMate.com.au

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.

To keep interests low and to provide affordable housing, Australia has to make it a priority to develop residential land, and to build homes to an over supply situation. That will have to mean developing new more efficient methods of developing land and building homes.

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. [...]

New Home builders are feeling the pinch as new home sales go south After a spike in new home sales in October 2009, and rate rises by the RBA, November new home construction slumped. Maybe its time to reduce interest rates. In fact, some are now talking as if the RBA will be lowering the [...]

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.