Monday, 17 October 2011


In spring we all know that buyers are out and ready.
But this year we also have a new element and even I don't know the exact effects, but I see change now.
So I predict that there will be more sales in the coming months because buyers will be ready to move and finalize a deal before the years out.
How can we take advantage of this.
First we need to know what they are after.
This now comes down to seeing if the Grant applies to your property for sale.
If not then its simply does not meet the criteria , BUT does that mean that the buyers drop out from there on.
NO NO NO they are out there now and ready.
They are 50% buyers they are half ready and probably approved. the 50% is done in them getting the money.

HOME loan approvals have risen as homebuyers grow increasingly confident that interest rates will stay on hold - or even fall - over the coming months.
The latest official figures show the number of home loans approved in August rose 1.2 per cent to 50,965 - the fifth straight month that housing finance commitments have risen.
The Australian Bureau of Statistics figures show the value of total housing finance offered to prospective house-buyers by lenders climbed 1 per cent in August, seasonally adjusted, to $20.8 billion.
Economists said the growing consensus that the Reserve Bank was less concerned about inflation and would not lift the official interest rate above the current setting of 4.75 per cent until at least mid next year had helped the housing market.
The Reserve Bank hasn't raised the cash rate since Melbourne Cup Day last year. ANZ and Westpac are now predicting a 25-basis point cut before Christmas.
Citigroup economist Josh Williamson said the trend in housing finance suggested the mild falls in house prices should be abating.

"This could reflect the stability in interest rates this year," Mr Williamson said.

JP Morgan added it might be the start of a "mini-rally" but not the start of a property boom.

"In our view, the RBA have little appetite for cutting rates as the data currently stands," JP Morgan economist Ben Jarman said.

This means that they would like a cheaper house to take advantage but also they are approved for a loan of who knows what amount.

Conclusion: More approved buyers are out there. 

According to the Australian Bureau of Statistics, the total number of loans approved rose 1.2 percent month-over-month in August, compared to a revised 1.9 percent increase in July. Loans for new home purchases rose 6 percent after dropping in July, while refinancing loans rose 1.7 percent. On a value basis, refinancing loans rose 4.2 percent in August.

The figures follow a string of data over the past couple of weeks pointing to improvement in the housing sector and in consumer sentiment. On Tuesday, the Westpac Consumer Confidence Index rose to a 4-month high, while data releases last week showed stronger-than-expected building approvals and retail sales. At the same time, the figures come as Australian government bonds continue their losing streak on reduced expectations that the Reserve Bank of Australia would cut rates amid stronger domestic conditions. 

Westpac Consumer Confidence Index 
Officially called the Consumer Sentiment Index, this figure measures the level of consumer confidence and is an average of five indexes measuring different aspects of consumer fiscal health. This is one of the few indicators that are entirely expectation based. Households report their views on current buying conditions for household items and where they feel are the "wisest" places to invest savings. Views on future political policy (taxes, politicians, government) and economic conditions (wages, inflation, unemployment) are also surveyed.
Confidence figures are often leading indicators for the consumer spending and the economy as a whole. The headline figure is percentage change in the index value from that of the previous month.

 Want to know more look at this page tomorrow....CCI PART 2


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