Australian house prices have been resilient despite other developed countries experiencing big falls, and rates cuts as well as government incentives have played a big part.
The housing market has seen a big increase in first home buyers due to the boost to the first home owner grant, and low rates coupled with other incentives have boosted the market.
The outlook for the global economy has stabilised but recovery is expected to be gradual. Industrial activity is showing early signs of stabilisation and consumer confidence is improving from very low levels.
Median house prices, on average, have fallen in the vicinity of 4-5% in the year to March. In contrast to the 20%-plus falls in other countries, this is an outstanding result.
Chinese demand is helping our financial markets to improve while government stimulus packages have had positive effect aslo. Australia has avoided a recession and has perfomed better than over major economies.
Our house values have held up too, and according to Residex have fallen just a small 1.2% in the year to May 2009. Other developed economies have seen major falls in prices meanwhile. Lower rates and help for first home buyers have helped the markets.
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