Will the FHOG save the housing market? A new report raises fresh doubts:
THE Australian housing market is facing the prospect of a “perfect storm” of financial pressures, including high mortgage debt, overvalued homes and rising unemployment, which could see prices eventually fall by as much as 30 per cent, investors have been warned.
The propaganda storm is building to extend the FHOG beyond its’ scheduled finish. If everyone gets $14,000 then land and house prices go up at least $14,000.
Latest figures showed that $8 billion of new home loans were taken out at the end of January, of which a quarter were advanced to first-time buyers who are driving a mini-revival in sales at the lower end of the market.
That has prompted the Sydney Chamber of Commerce to press the Federal Government to extend the level of cash support to first-time buyers beyond the current June 30 cut-off point.
Please note that last weekend’s auction clearance rates of 74% were on one tenth of the stock at auction compared to last year. Repeat – one tenth!
The mounting stock backlog withheld from the market will soon see a cascade of properties hit the market, perhaps as the run up to the June 30 deadline approaches.