Australia’s housing market is suddenly heating up again by JJ Smith August 21, 2019 written by JJ Smith After a two-year slide, Australian house prices look to have bottomed out, sending buyers flocking back to the market. A four-bedroom home went up for auction in the Sydney suburb of Ryde on Saturday. it attracted approximately 100 people. Spirited bidding pushed offers above the reserve price, where it finally sold for A$1.5 million, which was last seen during the boom years. People are now getting concerned that property prices are going to start increasing in the next six to 12 months, so are trying to buy now. The sudden turnaround is thanks to three main factors. The central bank’s back-to-back interest rate cuts that pushed mortgage rates to record lows. The regulator’s loosening of mortgage stress tests. And the surprise re-election of Scott Morrison’s government in May that killed off the opposition Labor party’s plans to wind back tax breaks for property investors. The property rebound is being celebrated in an otherwise sluggish economy. Rising house prices may help consumer spending by making homeowners feel wealthier. Dwelling values in Sydney, have risen in each of the past two months, according to CoreLogic Inc, which ended a nearly two year slide that saw prices tumble 15% from their July 2017 peak, and foreshortened a slump economists had forecast to extend into next year. Home prices also rose in Melbourne, Brisbane, Hobart and Darwin last month. Commonwealth Bank of Australia, the nation’s largest home lender, also says the housing market has turned the corner. Read the full article on nzhearald.co.nz: https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12258666. Can I help you find something else? If you need advice on moving to Australia from New Zealand, I’ve created a helpful little questionnaire to point you in the right direction. It takes less than 30 seconds, so give it a go!
Australian unemployment rate is stuck at 5.2 per cent, keeping ‘slack’ in labour market by JJ Smith August 21, 2019 written by JJ Smith Australia’s unemployment rate is stuck. And while that’s good news for some people, it’s terrible for anyone wanting a bigger pay cheque. ‘Not good enough’ was the verdict on Thursday’s new unemployment data that showed a lot of Australian’s moved into jobs but not enough to make the unemployment rate actually fall. Australia’s unemployment rate is stuck at 5.2 per cent, which means the RBA is set to go for even more rate cuts. Australia needs unemployment to go down so there’s not so much “slack” in the labour market, which will force firms to start offering higher wages. The ABS data showed that the slack is still abundant. The month of July showed the economy actually did well in one sense by moving 41,000 people into jobs, which were mostly full-time. But that wasn’t enough. However, with so many more people coming into the job market every month, the unemplyment rate did not reduce. In fact, the ABS showed the number of unemployed people went up by 800. Then they have the underemployment rate, which rose meaning even more people would like to work more hours. Sadly, wages growth in Australia remains weak.Weekly earning rose by only 2.5% over the last year, just keeping ahead of inflation. Wages used to grow by an average of 4% or more. There are two big reasons weak wages growth matters: 1. The economy is a big cycle. One person’s spending is another person’s income, and weak wages growth slows down that cycle. If wages aren’t increasing then people generally spend less, making someone else’s wages fall. This is called the “paradox of thrift”. One person trying to be frugal is fine, but if we all do it at once, the economy stumbles. 2. Australia has record high levels of household debt. Paying down a million-dollar mortgage is not so hard if you can rely on 4 per cent pay rises each year. A mortgage holder counting on strong wages growth to pay off their home loan will find it harder than previous generations… Read the full article on news.com.au: https://www.news.com.au/finance/work/careers/australian-unemployment-rate-is-stuck-at-52-per-cent-keeping-slack-in-labour-market/news-story/b483ba3ce5f367df1e702d53f40d1dd4. Can I help you find something else? If you need advice on moving to Australia from New Zealand, I’ve created a helpful little questionnaire to point you in the right direction. It takes less than 30 seconds, so give it a go!
Have you moved to Australia? We’d love to hear your story… by JJ Smith August 20, 2019 written by JJ Smith Take a minute to write your story below. On movingtoaustralia.co.nz I have been giving advice to New Zealanders moving across the ditch for over 10 years. Utilizing my experiences, questions from visitors like you and a lot of research online I post information you need to know when moving to Australia from New Zealand. I’ve tried my best to cover everything you could possibly need to know, but everyone has different needs and requirements. Now I’m looking to you… share your experience of moving to Australia and help other kiwi’s who want to do the same thing. Where did you move to in Australia and what’s it like to live there? How did you find a job? Where are you living? Have you brought a house? What is your new life like in Australia? Share your story now using the form below. It could be a paragraph or a whole page. I will then share it on Moing to Australia and your advice or questions will help others as mine has done for over a decade. [contact-form-7 id=”1642″ title=”Questions or advice form”] Can I help you find something else? If you need advice on moving to Australia from New Zealand, I’ve created a helpful little questionnaire to point you in the right direction. It takes less than 30 seconds, so give it a go!
Latest news on Sydney’s falling housing market by JJ Smith June 10, 2019 written by JJ Smith Home buyers urged to capitalise on lower prices while they still can Buyers still have a chance to snag homes at well below prices being paid two years ago, but their window of opportunity could be closing due to recent market changes. Sydney’s housing market has dropped 15% since 2017, but it is set to be reawakened soon with interest rate cuts producing ideal conditions for up-sizing families and first home buyers. The cut rate is said to give new buyers an average saving of $700 per year in repayments. The cash rate is the lowest since the 1960’s. The increased demand is meant to stop prices from falling but will not drive another boom due to the weakening economy. Experts are hoping for much needed stability after years of boom to bust conditions. Buyers and sellers would get more certainty about pricing. “It will be a flat market, not a rising one,” My Housing Market economist Andrew Wilson said. “A flat market … is good for everyone.” Read the full article on News.com.au: https://www.news.com.au/finance/real-estate/sydney-nsw/home-buyers-urged-to-capitalise-on-lower-prices-while-they-still-can/news-story/be2730d48db0f62050d11768fc355b73. Sydney becoming more affordable as property prices, rents and rates continue to drop Things are finally looking up for Sydney’s long frustrated home seekers – buyers are spending less of their money on repayments and it’s quicker to save a deposit. New buyers need to divert less of their income into repayments, now 46% of their income, down from more than half two years ago. With the Reserve Bank of Australia announcing Tuesday a record cut to the cash rate, mortgages are set to become even more affordable. Several banks passed the cut on in full to their customers. The average time it takes a buyer to save their 20% deposit has shrunk from 13 years to roughly 11. Assuming they earned the average household income of $94,588 per year. The gains represented the first time Sydney’s housing market showed a prolonged improvement in affordability in nearly seven years. The median price of a Sydney home has dropped close to 15% since the market peaked in July 2017 and is now about $808,000. Home buyers are being helped by more affordable rents, which are making it easier to save. A home at Sydney’s average rental price will now chew up 32% of the average household’s income, down from 34% two years ago. Home owners could also expect further improvements in affordability as prices continue to drop… Read the full article on realestate.com.au: https://www.realestate.com.au/news/sydney-becoming-more-affordable-as-property-prices-rents-and-rates-continue-to-drop/?rsf=syn:news:nca:dt:spa. Can I help you find something else? If you need advice on moving to Australia from New Zealand, I’ve created a helpful little questionnaire to point you in the right direction. It takes less than 30 seconds, so give it a go!
