Good or bad news interest rate continues to rise along with Property prices.
You see the same thing happening in U Arse A?
http://www.smh.com.au/business/red-hot-property-sector-points-to-rate-rise-20100106-ltb6.html
'Red hot' property sector points to rate rise
January 6, 2010 - 12:45PM
Better-than-expected building approvals data shows that the Australian property sector is going to be ‘‘red hot’’ in 2010, economists say.
But the sector will face some downward pressure if the Reserve Bank of Australia (RBA) lifts interest rates for an historic fourth consecutive month in February.
Australian building approvals rose 5.9 per cent to 13,724 units in November, seasonally adjusted, from an upwardly-revised 12,962 units in October, the Australian Bureau of Statistics (ABS) said this morning.
The rise surpassed the median market expectation of a 3 per cent rise for the month.
‘‘Australia is going to be red hot in 2010,’’ ICAP economist Adam Carr said. ‘‘I know this is November 2009 data, but we have all the conditions in place to see a very strong housing market - low interest rates, we saw 100,000 jobs created in the last few months, and a housing shortage.’’
‘‘Given this is November data, it’s a very good signal.’’
Private sector dwellings fell 1.9 per cent in the month to 9,386 while the volatile other dwellings sub-category rose by 27.5 per cent 3,404 units.
JPMorgan economist Helen Kevans said she expected the strong result despite the RBA’s recent rate rises and the scaling-back of the federal government’s first home buyer’s grant.
‘‘The market was expecting a lower number since the RBA started to increase rates, but we thought there would be a lot of pent-up demand for approvals even though the first home buyer’s grant had started to be unwound,’’ she said. ‘‘We were looking for a big number, and it was slightly stronger than expectations.
However, Ms Kevans said the market would experience some weakness as the RBA moves to lift interest rates above their current 3.75 per cent towards a ‘‘neutral’’ level of 4.5 to 5.0 per cent.
‘‘We’ll see some strength in approvals for the time being, but we’ll have some weakness going into 2010 as the RBA continues to hike rates,’’ she said. ‘‘We’re still focused on a February rate hike.’’
The central bank took the cash rate 25 basis points higher in October, November and December to its current 3.75 per cent.
The RBA is not scheduled to meet in January, and the board’s next scheduled meeting is on February 2.
Mr Carr said the November building approvals data would add to the case for the RBA to lift rates again in February.
‘‘I think the RBA will be looking at this number and they’ll certainly be looking at the retail sales number tomorrow and inflation numbers on January 27,’’ he said. ‘‘A February rate hike is still live.’’
AAP
You see the same thing happening in U Arse A?
http://www.smh.com.au/business/red-hot-property-sector-points-to-rate-rise-20100106-ltb6.html
'Red hot' property sector points to rate rise
January 6, 2010 - 12:45PM
Better-than-expected building approvals data shows that the Australian property sector is going to be ‘‘red hot’’ in 2010, economists say.
But the sector will face some downward pressure if the Reserve Bank of Australia (RBA) lifts interest rates for an historic fourth consecutive month in February.
Australian building approvals rose 5.9 per cent to 13,724 units in November, seasonally adjusted, from an upwardly-revised 12,962 units in October, the Australian Bureau of Statistics (ABS) said this morning.
The rise surpassed the median market expectation of a 3 per cent rise for the month.
‘‘Australia is going to be red hot in 2010,’’ ICAP economist Adam Carr said. ‘‘I know this is November 2009 data, but we have all the conditions in place to see a very strong housing market - low interest rates, we saw 100,000 jobs created in the last few months, and a housing shortage.’’
‘‘Given this is November data, it’s a very good signal.’’
Private sector dwellings fell 1.9 per cent in the month to 9,386 while the volatile other dwellings sub-category rose by 27.5 per cent 3,404 units.
JPMorgan economist Helen Kevans said she expected the strong result despite the RBA’s recent rate rises and the scaling-back of the federal government’s first home buyer’s grant.
‘‘The market was expecting a lower number since the RBA started to increase rates, but we thought there would be a lot of pent-up demand for approvals even though the first home buyer’s grant had started to be unwound,’’ she said. ‘‘We were looking for a big number, and it was slightly stronger than expectations.
However, Ms Kevans said the market would experience some weakness as the RBA moves to lift interest rates above their current 3.75 per cent towards a ‘‘neutral’’ level of 4.5 to 5.0 per cent.
‘‘We’ll see some strength in approvals for the time being, but we’ll have some weakness going into 2010 as the RBA continues to hike rates,’’ she said. ‘‘We’re still focused on a February rate hike.’’
The central bank took the cash rate 25 basis points higher in October, November and December to its current 3.75 per cent.
The RBA is not scheduled to meet in January, and the board’s next scheduled meeting is on February 2.
Mr Carr said the November building approvals data would add to the case for the RBA to lift rates again in February.
‘‘I think the RBA will be looking at this number and they’ll certainly be looking at the retail sales number tomorrow and inflation numbers on January 27,’’ he said. ‘‘A February rate hike is still live.’’
AAP
