Indicators


How does inflation affect house prices?

How does inflation affect house prices?

Real estate markets are driven by a number of factors. House prices reflect the sensitivity of those factors. The Inflation Rate is one of those factors which is has a direct relation to interest rates. Interest rates are adjusted by the Reserve Bank of Australia in order to meet its inflation targets of two to three percent.

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What is the Inflation Rate?

What is the Inflation Rate?

The Inflation Rate is an increase in prices of goods and services. When inflation rises, prices go up and the value of money goes down; every dollar you own buys you a smaller percentage of goods and services. This is what is called ‘purchasing power’.

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Median Price - What is it and why is it important?

Median Price - What is it and why is it important?

In relation to property, the median price is one of the most reported, discussed and analysed pieces of data. On the surface it can give you an indication of the value of houses and units in a particular city or suburb. It can also provide an indication of the trend and the strength of a particular market and be a reflection of the general sentiment and confidence in the market.

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How does long term credit growth affect property prices?

How does long term credit growth affect property prices?

The long term credit growth rate and the national property median price growth rate have a highly correlated relationship. If long term credit growth is on an upward trend, then property prices are likely to follow, with a similar relationship in a downward trend.

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Mortgage Arrears

Mortgage Arrears

Mortgage arrears is an overdue monthly repayment of a loan. When your loan is overdue for more than 30 days, banks are likely to inform the borrower of the legal consequences of missed repayments.

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RBA Cash Rate

RBA Cash Rate

The Cash rate is the interest rate which banks pay to borrow funds from other banks in the money market on an overnight basis, and it serves as a benchmark rate around the country. The Reserve Bank of Australia (RBA) is the administrator of the cash rate and the RBA board meets monthly to decide he most appropriate monetary policy for Australia. 

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