 Improvements in financial markets
Australian industries are showing early signs of recovering after the global financial crisis that has dominated headlines for the past 12 months.
During the past year constant worries about our economy has prompted the Rudd Government to hand out millions of dollars in two stimulus packages and caused the Reserve Bank of Australia to slash the official interest rate down from 7.25% to the current 3% over a period of just six months.
However, many markets are now showing their resilience, posting big gains or improvements and prompting the RBA to hint at imminent interest rate rises.
Consumer sentiment and business confidence are up, the Australian share market has had its biggest three-month gain in more than 20 years – up 22 per cent – and the average superannuation fund has gained about $7000 in the past quarter.
In Queensland, retailers are reporting August as a positive month, with many saying they are seeing higher spending.
The Australian Prudential Regulatory Authority says building is also looking up, with new approvals gaining 3.1 per cent in August, alongside home loan approvals rising.
Property values rose almost 2 per cent nationally during September and recorded healthy rises in most capital cities.
RP Data shows Queensland and Brisbane were posting positive gains and research director Tim Lawless is also seeing homes selling faster.
The main players in the market are now second and third-time buyers, those looking to upgrade or purchase an investment. The rush from first home buyers has fallen as the boost to the first home owner grant is reduced gradually.
It is hoped that these group of 'upgraders' will support the property market into 2010 and 2011 while the first home owner numbers fall.
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