Neville Sanders is President of the Real Estate Institute of Australia.
A feature of the past year has been the diversity of the Australian housing market with the median price in Sydney increasing by 22.6 per cent in the twelve months to September whilst Perth decreased by 5.0 per cent.
With investor activity abating the lending figures indicate a market that is steady.
With inflation under control and a moderating housing market, home buyers can expect a stable outlook with the possibility of a further rate interest rate cut.
With investor activity abating, any concerns of an over heating property market should be laid to rest.
It needs to be recognised that superannuation and home ownership are both components of a retiree’s nest egg and not competing products.
To be successful, competitors have to deal with a wide range of testing questions and unpredictable bids.
The latest housing finance figures released by the Australian Bureau of Statistics reflect declining lending activity.
With inflation under control combined with a slow down in housing finance, it’s reasonable to expect that the RBA Board will not be increasing interest rates in the medium term, providing a stable outlook for home buyers.
The moderating housing lending suggest any concerns of an over heating property market should be laid to rest and also allay fears of an imminent bubble.
Many agents will in particular welcome the changes to the Fringe Tax Benefit arrangements in this year's budget.