Australian Real Estate Market Indicates Positive Patterns; New Home Sales Increase
After multiple months of consecutive decline, the Australian housing market is finally showing some positive signs. In a recent research conducted by the Housing Industry Association, it was analyzed that on the whole, new house sales increased 4.7 percent in November 2012.
A 7.7 percent rise was recorded in the single or detached home sales. However, sales of multi-winged homes dropped by 6.9 percent after a slight hike in October, reports Property Wire.
The gross total returns on apartments and single unit homes increased to 4 percent by the end of December, 2012. However, rental returns remained stagnant at 4.9 and 4.2 percent for apartments and homes respectively, reports Bloomberg.
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Home prices in Perth rose by over 1 percent while in Adelaide and Brisbane prices rose by 0.5 percent. Sydney's markets also recorded a slight rise of 0.5 percent in the housing prices, reports Handle Property group.
Various economists of the country have opined that the recovery of the housing market is largely based on the fresh government grants that has worked in support of construction of new homes, reports The Australian.
The Reserve Bank Of Australia lowered the cash rates by 1.75 percent that kicked off reduction in mortgage rates by 6.65 percent in November. This augmented the affordability of homes in the country. Further rate cuts are expected to attract buyers into the market, reports Bloomberg.
"It is promising to see new home sales moving in the right direction, However, the sector has a long way to go before we could consider sales volumes to be at satisfactory levels," Geordan Murray, economist at Housing Industry Association told The Australian. "The importance of a broad based rejuvenation of new home building to maintaining the health of the overall Australian economy has been widely acknowledged. But at this stage, new home sales sits among a host of indicators that are yet to provide conclusive evidence that we are on track to achieve this."
In the financial year 2013-14, rental and capital returns may reach new highs and significant progress in the housing market is expected. However, the market will slow down in 2015 again, reports Homesales.com.