Ryder says regional markets south of Perth are growing. He believes South Australian and Victorian regional centres are also picking up, as is Launceston in Tasmania.
Ryder cites the latest update of his own Price Predictor Index which points to increasing sales volumes across the country, which he says “inevitably leads to price growth”.
According to Westpac’s July consumer sentiment report, there is a “healthy rise in confidence” regarding real estate, says Ryder.
“There was a brief period in May when decision-making halted as people digested the Federal budget we seem to have moved on,” says Ryder.
Ryder notes that building approvals increased 16% in 12 months to April 2014, with South Australia, Western Australia, New South Wales and Queensland all leading.
On an annual basis, lending for home loans is up 12%, says Ryder. He notes double-digit growth in six states and territories.
Lending for investors is up by an even greater proportion, with 28% annual growth and 1.1% growth in the month to April. Investor lending has increased by 17% or more in five states (presumably annually), says Ryder.
Though Ryder believes foreign buyers’ impact on local markets is exaggerated, he does believe Asian investors are continuing to affect inner-city unit markets.
Ryder believes Australia’s current record low interest rates are “unlikely to change in the near future”.
“Contrary to claims that ‘the boom is over’, all the evidence says that a national boom is really just beginning”, claims Ryder.
This story first appeared on Property Observer.
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