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Hot spots heat up a flat market
Adelaide Now "It is also fascinating that the traditional suburbs around Port Adelaide were not affected by the bad publicity surrounding the (falling prices in the) Newport Quays development." Mr Moulton said there were "always" pockets of real estate that did … |
RateCity, a financial comparison website, said this could be a real concern for borrowers and investors with properties in suburbs where real estate values have plummeted.
“Some borrowers looking to refinance this year could be in for a nasty shock,” RateCity CEO Damian Smith said in a statement on Wednesday.
Those who borrowed 95 per cent or more of a property’s value would be the hardest hit if they lived in suburban Adelaide, south east Queensland or Perth.
According to Australian Property Monitors data, median house prices around the country fell 3.5 per cent in the year to September compared to the previous year, with Brisbane recording the biggest fall – 6.7 per cent.
Mr Smith said the refinancing problem lay in the fact that in September last year the average Brisbane house cost around $460,000, so a borrower with a five per cent deposit of $23,000 would have taken out a loan of $437,000.
“That borrower might now find that their home is valued at $429,000,” he said.
After one year, this borrower would have repaid only $6000 of the principal – assuming a seven per cent interest rate and a 25-year loan term – meaning their mortgage would now be around $430,000 and more than 100 per cent of the value of the home.
“They would struggle to find a new lender willing to take their business,” Mr Smith said, adding they could not easily refinance to get a lower interest rate.
LVR (loan-for-value-ratio) mortgages of 100 per cent-plus have gone out of favour since the global financial crisis
Most home loans now require a minimum five per cent deposit.
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Falling home prices a pain for refinancing
Ninemsn RateCity, a financial comparison website, said this could be a real concern for borrowers and investors with properties in suburbs where real estate values have plummeted. "Some borrowers looking to refinance this year could be in for a nasty shock," … |
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Vacancies hit SA rental market
Adelaide Now Real Estate Institute of South Australia president Greg Moulton said evidence from members indicated the market was patchy. "Some regional areas are finding it particularly tough, which is often found when the state hits harder economic times," he said … |
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Urban Australian Real Estate Prices Dropping
NuWire Investor Perth house prices declined by 1.3%, Adelaide fell by 0.9%, Canberra fell by 2%, Hobart fell by 1% and Darwin fell by 0.4%. Year on year, preliminary estimates show that the price index for established houses for the weighted average of the eight … |
 Brisbane Times |
Adelaide's housing market still one of Australia's most affordable
Adelaide Now Figures for the September quarter, released by Australian Property Monitors, shows Adelaide's median house price was $432299. Brisbane was the most affordable city with a median price of $429339. However, Real Estate Institute of SA president Greg Nybo … Brisbane wins housing race to the bottom |
The Valuer-General’s 6 per cent upward revaluation of properties, announced yesterday, defies Adelaide’s slowing real estate market.
According to RP Data’s latest report, the median house price fell 0.5 per cent in the 12 months to March this year.
The Valuer-General says more than 870,000 properties in the state are now worth $350 billion, up from about $330 billion in the previous financial year.
The latest valuations come into effect from July 1 and will be used in part to determine land tax, sewerage and council rates, the Emergency Services and Natural Resource Management levies, and water rates for non-residential properties.
The impact on property charges will vary, depending on council area, but on average would add about $90 a year. Land tax – not paid on every property – would increase by $115 on the median-priced house.
Deputy Valuer-General Steve O’Loughlin yesterday defended the valuations, which were taken at January 1 this year and take into account property-price growth during 2010, which was in line with increases in valuations. “We have a common date of valuation and that date is January 1 each year,” he said.
“Any market movements after January 1 this year will be reflected in next year’s valuations.”
SA Federation of Residents and Ratepayers Associations president Kevin Kaeding deemed the valuations and looming tax and rate hikes a further worry for people facing cost-of-living pressures.
“It’s going to be a massive burden on the whole community, on top of all the other rises,” he said.
Council areas to witness the biggest jump in values included Adelaide, Burnside and Walkerville, where the increases totalled around 10 per cent.
The Valuer-General’s rise in property prices comes as no consolation to Eugene Lepore, who has slashed $135,000 off the asking price for his Athelstone property.
“It’s pretty rough,” he said.
“They are saying your value is higher, so they can charge more dollars; but then when you go to sell, it’s not worth that amount.”
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PRICE HIKES*
Land tax: up $115
Council rates: up between $50-$70
Sewerage rates: up $30
*based on the median metropolitan house price of $408,000
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Defence Force housing hopes letdown
Adelaide Now Source: The Advertiser THE Defence Force has failed to deliver the real estate boost it promised with the 7RAR's move from Darwin. Defence Housing Australia chief operating officer Peter Howman said the housing program in preparation for the 7RAR … |
Data released by the Valuer General shows Tea Tree Gully’s median house price jumped 34.7 per cent to $444,450 for the year to the end of September, compared with $330,000 for the same period in 2010.
Hawthorndene’s median house price is now $485,000, up 20.5 per cent from $402,500.
News is not as good for homeowners in Fulham Gardens, where the median price dropped 23.6 per cent from $720,000 to $550,000 in just one year.
Also experiencing falls were Salisbury Heights, dropping 18.5 per cent to $317,750 and Somerton Park, down 18.3 per cent to $635,000.
The figures show South Australia has not been protected from a nationwide fall in house prices caused by the economic slowdown, with a 2.7 per cent fall in median house prices across the state and a 10.4 per cent fall within inner-metropolitan Adelaide.
Real Estate Institute of South Australia president Greg Nybo said the fall was slight and reflected “absolute resilience” in the SA market.
“Even though our volumes … are probably down 20 per cent, to nearly come back (to a) 2.6 per cent (fall) just shows the real strength of the market,” Mr Nybo said.
“While days on the market might have extended out significantly, the median sales price is really holding the line.”
He said the 10.4 per cent drop in the inner-metropolitan areas – which takes in Medindie, Walkerville and North Adelaide – could reflect caution after 10 years of “spectacular growth”.
Ray White Blackwood principal Brenton Craggs – himself a former Hawthorndene resident – was not surprised by growth in his old suburb.
“You get the far-reaching views, the tree tops and the birdlife,” he said.
Kylie Howard and her family moved to Hawthorndene from Woodville North at Easter because of the family-friendly appeal.
“We wanted to find a nicer place to bring up our children,” she said.
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Winning suburbs in a slow market
Adelaide Now ADELAIDE councils are leading the way in stormwater harvesting with various projects expected to take the city's harvesting capacity to 20 gigalitres per year by 2013. Real Estate Institute of South Australia president Greg Nybo said the fall was … |