It looks like The Great Slow-down in the real estate market is helping first-home buyers get into the game, as 30 per cent more of them entered the market in November ’05 compared to November 2004. Owner-occupiers are also buying up big, as investors continue to sell off their homes due to low rent.
“Improving affordability has encouraged first-home buyers back into the market. If investors remain on the sidelines, then it is more likely that property prices will continue to consolidate.”
– Westpac economist Andrew Hanlan
A record number of Australians signed up for new home loans in November, which is great, but this may lead to a slight increase in interest rates … maybe 0.25 per cent in the June quarter.