Resources: Market Update
October 2009
OUTLOOK FOR PROPERTY STRONG.
Posted 14/10/09
House prices are expected to surge by about 20% between now and 2012, according to the Housing Outlook Report from 2010 to 2012 by mortgage insurer QBE Lenders' Mortgage Insurance (QBE LMI).
Driven higher by on-going shortages QBE LMI chief executive Ian Graham said "Double digit house price growth is forecast across all capital cities from June 2009 to June 2012."
The report researched by BIS Shrapnel has predicted the following house price increases:
Adelaide to lead national growth by an amazing 23%.
Sydney to grow by 21%.
Melbourne to increase by 19%.
Brisbane and Hobart to grow by an expected 15%.
Darwin increase by 17%
Perth and the ACT to be around 12%.
Mr Graham went onto say that ''While interest rates are forecast to rise over 2010-2012, the outlook for the Australian housing market looks positive,''
'The current low interest rates will be the main driver for house price increases, which are expected to accelerate through to 2012, particularly in those markets with positive affordability and continuing undersupply of housing.''
WESTPAC & LOW DOC LOANS.
Posted 12/10/09
Currently Westpac has the most competitive offer in the market for Low Doc customers as other lenders have reduced their discounts and/or tightened credit policy.
Westpac will continue to be one of the only major banks to offer package discounts for Low Doc loans with an LVR greater than 60%. However the discount offered on the Lower and Middle tier under the Premier Advantage Package (PAP) will decrease by 0.10% for Low Doc loans only.
ALL THE MAJORS INCREASE RATES.
Posted 09/10/09
ANZ was the first of the big four to increase rates, however it didn't take the NAB and CBA to follow suit. Westpac also joined the ranks late afternoon.
CBA and NAB still retain the lowest variable rate of the big four at 5.99%, while Westpac and ANZ are higher at 6.06%.
The Adelaide Bank as well as Bendigo have also matched the rate increases.
RBA INCREASES RATES.
Posted 07/10/09
The RBA have raised rates for the first time this year with Glenn Stevens the Governor saying confidence is recovering and economic conditions in Australia are stronger than expected.
The new cash rate has increased by 0.25% to 3.25% and will kick in on 7 October. This increase will add $40 to the average monthly payment for a typical $300,000 mortgage.
It is expected that all lenders will increase their mortgage rates with analysts' believing more increases are on the way.
CBA INCREASES FIXED RATES.
Posted 02/10/09
The Commonwealth Bank has just announced that it is going to increase its fixed-lending costs ahead of the Reserve decision next week.
One year fixed rates are now 6.19% an increase of 0.5% whilst two year fixed rates have increased to 6.84% up 0.3%. Three year fixed rates have risen by 0.15% to 7.29% and five year rates are 7.69% an increase of 0.10%.
This is the third time in six months the CBA has raised their rates ahead of the Reserve.
A CBA spokesperson said that the bank has been forced to increase rates in line with market conditions.
Since August last year the Commonwealth Bank now accounts for 25% of all mortgages in Australia.
