Things in the Australian housing market are looking good - unless you’re a broker, says Residex founder, John Edwards.
“The housing market is presenting growth on an Australia-wide basis and the trend is moving in an upward direction.”
However, while capital values are recovering, Edwards says sales volumes remain low – and this is particularly bad news for the mortgage industry.
“In fact, sales in January – February 2013 were the lowest seen on an Australia-wide basis since 1999. In many respects, the Reserve Bank and other managing agencies of the Australian economy should be more focused on this number than auction clearance rates and the upward trend in capital values. It is volumes that drive wealth generation and the economy.”
Without volume, he says, mortgage brokers, real estate agents, lenders, and even goods and services industries supporting home improvements suffer.