Vested interests may be spreading the word of rising house prices as a ploy to encourage buyers into a soft market, but data released from the Reserve Bank of Australia today show potential owner occupiers remain firmly on strike.
Growth in housing finance in the 12 months to July trickles in at just 5.1 per cent, recording no change from last month. At 5.1 per cent, growth remains the lowest since records started 35 years ago.
For owner-occupiers, growth in lending for homes has fallen to 4.8 per cent in July, down from 5.1 per cent in May. This is also the lowest figure since records started 21 years ago.
Investors are the only ones listening to advice from our spruikers, with lending for investment housing increasing to 5.3 per cent – in hope to make a quick buck. Finance for investor housing has exhibited consecutive increases since January’s low of 4.8 per cent.
The Sunday Age’s property reporter, Chris Vedelago, wrote today on what he calls the property industry’s worst nightmare – potential buyers who are sitting on sizeable savings but refuse to take the plunge. Are you a member of this growing army?
You can read his excellent article, Buyers who refuse to buy – here.
But with the potential of sizable falls as Australia’s property market makes its way back to planet earth, it appears any number of incentives including rebates, cars, furniture, holidays and even a $65,000 Mercedes is having little effect on Melbourne’s oversupplied apartment market as developers race each other to the bottom.
For further information on this story, read Chris Vedelago’s article from Sunday, Gifts galore boost flagging unit sales
The Australian Bureau of Statistics will release the quarterly update to official House Price Index tomorrow.
» Financial Aggregates, June 2012 – The Reserve Bank of Australia, 31st July 2012.
» Buyers who refuse to buy – The Sydney Morning Herald, 31st July 2012.
» Gifts galore boost flagging unit sales – The Age, 29th July 2012.