No alarms and no surprises from the RBA.

SPOILER: No alarms and no surprises from the RBA. Philip Lowe’s statement is below.

At its meeting today, the Board decided to maintain the current policy settings, including the targets for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.

The global economy has experienced a severe downturn as countries seek to contain the coronavirus. Many people have lost their jobs and there has been a sharp rise in unemployment. Leading indicators have generally picked up recently, suggesting the worst of the global economic contraction has now passed. Despite this, the outlook remains uncertain and the recovery is expected to be bumpy and will depend upon containment of the coronavirus. Over the past month, infection rates have declined in many countries, but they are still very high and rising in others.

Globally, conditions in financial markets have improved. Volatility has declined and there have been large raisings of both debt and equity. The prices of many assets have risen substantially despite the high level of uncertainty about the economic outlook. Bond yields remain at historically low levels.In Australia, the government bond markets are operating effectively and the yield on 3-year Australian Government Securities (AGS) is at the target of around 25 basis points. Given these developments, the Bank has not purchased government bonds for some time, with total purchases to date of around $50 billion. The Bank is prepared to scale-up its bond purchases again and will do whatever is necessary to ensure bond markets remain functional and to achieve the yield target for 3-year AGS. The yield target will remain in place until progress is being made towards the goals for full employment and inflation.

The Bank’s market operations are continuing to support a high level of liquidity in the Australian financial system. Authorised deposit-taking institutions are continuing to draw on the Term Funding Facility, with total drawings to date of around $15 billion. Further use of this facility is expected over coming months.

The Australian economy is going through a very difficult period and is experiencing the biggest contraction since the 1930s. Since March, an unprecedented 800,000 people have lost their jobs, with many others retaining their job only because of government and other support programs. Conditions have, however, stabilised recently and the downturn has been less severe than earlier expected. While total hours worked in Australia continued to decline in May, the decline was considerably smaller than in April and less than previously thought likely. There has also been a pick-up in retail spending in response to the decline in infections and the easing of restrictions in most of the country.

Notwithstanding the signs of a gradual improvement, the nature and speed of the economic recovery remains highly uncertain. Uncertainty about the health situation and the future strength of the economy is making many households and businesses cautious, and this is affecting consumption and investment plans. The pandemic is also prompting many firms to reconsider their business models. As some businesses rehire workers as demand returns, others are restructuring their operations.The substantial, coordinated and unprecedented easing of fiscal and monetary policy in Australia is helping the economy through this difficult period. It is likely that fiscal and monetary support will be required for some time.

The Board is committed to do what it can to support jobs, incomes and businesses and to make sure that Australia is well placed for the recovery. Its actions are keeping funding costs low and supporting the supply of credit to households and businesses. This accommodative approach will be maintained as long as it is required. The Board will not increase the cash rate target until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2–3 percent target band.

The Federal Government’s HomeBuilder scheme has led to a surge in new home inquiries since it was announced in early June.

REA have today released their ‘Insights New Homes Snapshot’ for July, which shows inquiries to developers nationally jumped by almost 63% in June.

Even more impressively, inquiries about land experienced a 93% lift over the month.

“I expect to continue seeing high levels of inquiry to developers as buyers look to capitalize on government incentives and historic low borrowing costs that are currently available,” REA Group Executive Manager – Economic Research, Cameron Kusher, said.

Up, up and away

“First home buyer activity increased 28.5 percent in June when looking specifically at email inquiry on realestate.com.au, and it’s likely some of this activity was a result of the HomeBuilder stimulus announcement.

“It’s no surprise that land estate new development is benefiting from HomeBuilder given the package is geared towards new builds, there are restrictions on construction timeframes that inhibit apartment development, and the Australian dream is to own a house.”

The $25,000 offered by the scheme, on top of state government incentives have, not surprisingly, led to this surge in interest.

Since the announcement of the Federal Government’s HomeBuilder scheme, inquiries to developers on realestate.com.au have surged to record levels.

Buyer appetite for new homes is surging, with inquiry to developers jumping by 62.8 percent in June. This spike followed on from a bullish 53.9 percent increase in May.

All signs suggest the announcement of HomeBuilder in early June has led to a further surge in the already increasing interest in new properties.

Not surprisingly, land estate inquiries have recorded the largest jump over the month, up 93 percent, followed by a 29.4 percent increase in apartment leads and a much lower 4.3 percent lift in inquiries for new retirement properties.

Over the past two months, inquiries for land estates have risen by 222.2 percent while apartment inquiries are 79.1 percent higher and retirement inquiries have increased 107.1 percent.

Nationally, last month saw a record number of developer inquiries.

The Northern Territory was the only state or territory in which inquiries fell last month (-21.2%) while inquiries trebled in Tasmania (203.5%), more than doubled in Western Australia (179%) and almost doubled in Queensland (97.2%) and South Australia (98.8%).

Although inquiry has surged, the number of developer page views was down -5.5 percent in June compared to May. The fact that inquiry has surged at a time when page views have reduced suggests high buyer intent.

Land estates were the only category in which page views increased last month (11.3%) with falls recorded for an apartment (-14.2%) and retirement (-16.4%) categories.

Looking at overall page views by the state last month, increases were recorded in South Australia (9.2%), Western Australia (11.5%), Tasmania (18.8%) and Australian Capital Territory (4.1%) while falls were recorded elsewhere, the largest of which occurred in Northern Territory (-23.1%) and Victoria (-9.9%).

Despite the month-on-month decline in page views for new developments in June, the overall audience for all new property sections on realestate.com.au, including new home design and builder profiles, hit a record high last month. The surging interest in-home designs and builder profiles suggests that many potential buyers are yet to decide exactly where they would like to purchase but are showing intent to choose a builder and design their new home although HomeBuilder has received some criticism, mostly around the requirements for the renovation aspect of the stimulus, it is clear that it is helping to drive demand for new housing. In particular, inquiries and page views for land estates have increased substantially last month following an increase the previous month before HomeBuilder was announced. Of course, for first home buyers, HomeBuilder is an additional $25,000 incentive on top of additional incentives that already exist in all states and territories, many of which are also targeted at the new housing sector. The homeBuilder will be extremely attractive for first-home buyers and is likely to pull-forward purchase decisions from this buyer cohort. The challenge is likely to come once the first-home buyer pull-forward is exhausted (there is only a finite supply of these buyers and incentives are only available until the end of 2020) and, assuming international borders remain closed, there are no replacement sources of demand for new homes in 2021. We expect that there will be ongoing elevated levels of inquiry to developers as buyers look to capitalize on these attractive incentives and historic low borrowing costs.

Best Regards

Linda 姬琳达珍 and Carlos Debello (LREA)

LJ Gilland Real Estate Pty Ltd

Debello LREA推荐书LJ Gilland房地产
http://ljgrealestate.com.au/testimonials/

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Review submitted by Rod & Kathy Jarrett (vendor) on 07 May 2020 https://www.ratemyagent.com.au/real-estate-agent/linda-debello/reviews/18-evergreen-st-ormiston-aast11 Verified by RateMyAgent https://www.ratemyagent.com.au/real-estate-agent/linda-debello/reviews/18-evergreen-st-ormiston-aasre4

Very recently we rented this Caboolture home without advertising, START <To everyone at L J Gilland Real Estate and review readers,

Over the past 3 years we have been 'customers' after referral from a work colleague.

As a current customer, we can recommend the services of this real estate.

Why we hear you say?

Well - when they make a time to meet, they are there on time.

Communications - both in person and via Emails are professional, courteous and respectful.

Legals - staff are aware of the laws relating to rentals - for both owners and tenants. This is very important with recent 'Covid 19' alterations to the laws.

Carlos and his workshop on wheels can be relied upon to fix all those 'little things' that make a difference (without overpriced charges) - which is truly appreciated.

Value - In comparison to other companies, you can't go wrong.

In a nutshell, this is a team who 'know the ropes', who care for your property for you, who present it and promote it in a professional way, who observe and follow laws related to rental.

Thank you for reading

Sincerely

Bob and Carole

Morayfield

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