Adam Carr – “even the English are referring to Australians as ‘whinging Aussies’.”

Brilliant article from Adam Carr highlighting the disparate nature of our sound economy and the morbid need for gloom. While an interest rate cut could well see overall confidence drop further once again we wonder just how long and how much larger an event will it be to trigger a change of leadership in government consequently allowing the turn of sentiment, something so many are crying out for. More…

Buyers on Green Light.

With the NAB revising its June assessment of the RBA’s predicted movement, indicating a reduction in the cash rate, and Bill Evans from Westpac now predicting rates will hit record lows by the end of 2012 (try 2.75%), investors and first home buyers have been given a green light. Add to this changes in lending criteria from banks which now take into consideration casual and secondary incomes when assessing mortgage applications and you have a primed demand equation as we progress toward Spring.

Rate change, meh…

Interest rate changes no longer have an impact on buyer decisions. That’s the underlying theme being expressed by a number of commentators after yesterday’s RBA surprise slashing by 0.5 points. Commsec analyst Craig James pointed out “we do know that there’s plenty of bargains out there for cashed-up buyers. But the missing ingredient is basically confidence”. Even industry veteran John McGrath sneses we have left the traditional interest rate link to buyer activity in the past. Increasingly buyer activity has become subject to a larger group of global influences which gives reason for us to reflect on the theory of compressed market shifts. Given the uncertainty of Europe, most recently Spain’s difficulties, and the disjointed recovery in the U.S. as they head into an election period culminating in our own fractured domestic political landscape all of which form part of the daily soup served up to home buyers, is it any wonder there is reason for a lack of confidence in the market? That being the case, what will it take to restore security to buyer perception? Welcome to the “NEW” normal.

Auction Clearance Rates – Take a Guess.

As we have already pointed out (ahem, Feb 27) weekly auction results can be as elastic as grandma’s undies. The reporting of auction results is voluntary and often we see un-reported results excluded from the calculation of the weekends clearance rate. Chris Vedelago does a nice job of pointing this out. We joyfully second him questioning why our esteemed RBA even quote these figures? Chris makes it clear “perhaps instead of just citing them, the RBA can lend its weight to ensure they’re as accurate as possible”. (ED: Props for the Numberwang reference). More…