Home Values / Finance Figures

It seems home values in Australia have held up pretty well. A gauge of real estate values released yesterday (RP Data-Rismark International) showed they have risen 4% so far in 2009. Sydney has done particularly well rising 5.2% so far in 09. It seems the low interest rates are having a real impact and if these sorts of trends continue I'll have to re-think my expectations for another easing.

In contrast to these figures however are a drop in new home sales where a nationwide slide snapped four months of gains. Sales dropped 5.7% in May hinting that we may be running out of first home buyers.

Further negative indicators were provided by a drop in private sector credit of 0.1% in May following a rise of 0.1% in April. While housing credit rose 0.5% slowing from +0.6% in April personal credit dropped 0.6% and business credit was down 0.7%.

The fall in credit is a clear pointer to potentially soft quarters down the track.