Investor Loans for new homes surge…

• There is no shortage of geopolitical tensions (think the South China Sea, Europe, and the Middle East) that make me grateful that we live free of war and major conflict here in Perth.
• After closing at close to another all-time high yesterday, the S&P/ASX 200 dived 2% early this morning on the combination of weak manufacturing data out of the US and similar data released in China over the weekend.
• China’s residential property market deteriorated further in August. As the property sector is a major driver of steel demand, the price of Iron Ore has dropped.
• After climbing 10% over the last two weeks, Iron has retreated and is now trading at $US 93.45 a tonne. The Aussie dollar is down 1% at US 67.06c
• All eyes will be on the US jobs data, but Friday their time. This result is viewed as the determinant of the Federal Reserve’s decision to cut interest rates at its 17-18 September policy meeting.
• Australia’s June quarter GDP figures out today came in at 0.2% quarter on quarter, taking the annual growth to a mere 1.0%.
• Perth’s median property price of $785,250 is above Melbourne’s for the first time in 10 years.
• WA’s low rental vacancy rate (still <1%) and the 20% house price growth over the last 12 months have attracted investors to build. Investor loans for new homes in WA are up 66.4% in 2023/2024.
• With record lows for multi-unit construction and a shortage of shovel-ready land, Perth’s housing crisis is far from resolving.
• Congratulations to my personal sales team, who were recognised for thesecond-highest Sales by Value Sold in the last financial year by REIWA.
• Call me today to discuss how my team will get you the most for your home or investment property.

by Jody Fewster