Housing Update - June 2016

Housing Update - June 2016

RP Data / Core Logic released their June Overview / Update on the property market this week and it made for interesting reading for property investors:

Residential real estate is still the key driver behind our nation's wealth, at more than three times the value of our superannuation funds:

Due to last month's cash rate drop by the RBA and the subsequent interest rate drops by the lenders, forward projections for mortgage demand has definitely spiked upwards:

For all the talk in the media that Australian house prices are out of control, if you look at the graph below, it clearly shows that dwelling approvals are high, but still remained below recent peaks:

With the unemployment rate definitely being under control:

And finally, consumer sentiment is heading upwards again thanks to last month's interest rate cut. This has made interest rates that we are now paying the lowest for many years and for our generation:

If you’d like to read the full report from RPData/Core Logic – Please contact your property Mentor or Branch. Have a great weekend and catch you next week!

Warm Regards,

Troy Gunasekera