Key macro and micro factors influencing housing in Australia
Australians have placed a high degree of importance on home ownership, which is perceived as important for the stability of family life and wealth of creation. Over many decades the Australian government has been encouraging home ownership through direct grants to first-time home buyers (Plumb et al, (2010, p. 1), reserve bank of Australia).According to the Australian bureau of statists in the housing departments around 70% of Australians live in owner-occupied dwellings, and of these 50% own their own properties without a mortgage or a loan. In conclusion around 25% of Australians live in rented accommodations and more than 3 quarters of Australians rent from private landlords (Mustafa 2014, p. 1, Australian bureau of statics).Housing plays a strong role in regards to the social wellbeing of Australians. Good housing has provided good social and economic environment for society (Mustafa 2014, p. 1, Australian bureau of statics).
Factors influencing the housing market
Interest’s rates
These are the most important factors which affect housing and the property market in Australia. The definition of interest rates according to investor words is “a rate which is charged or paid for the use of money’. Interest rate is calculated by dividing the amount of interest by the amount of the principal. Interest rates in Australia change as a result of inflation and rates of the reserve bank of Australia change. When interest rates are low the demand for housing rises due to the bank being able to lend more people money thus the housing market increases, however when the interest rate rises the bank makes cuts towards the interest rates which means less profit is made on each lo...
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...0.90% in December 1992 and also a record low of 4.00% in 2008. There has been a decrease in unemployment yet a rapid increase in employment from 18,100 people being unemployed compared to 11,553,200 being employed as shown in the graph below (lee 2014, p 1)
There are three key factors that influence the current Australian housing market; these are interest rates, economic growth and unemployment, all three of these factors uniquely play a part in the fluctuating rate of housing in Australia. As a result of these factors housing demands will never be stable due to external factors restricting people’s alibility to apply for finance and also due to job wages fluctuating making it very difficult to maintain a proper job as a result of low or high income thus housing will always vary depending on the person income and the Reserve banks interests rates.
introduced Department of Housing, Home Savings Grants Scheme and Housing Loans Insurance Corporation to help more Australians own their own home
The housing market is very unique as unlike other goods and services, houses have permanence, it is a fixed location good causing the rules of supply and demand to be taken to new extremes. In the case of the Toronto housing market we can view in almost real time the role supply and demand play on he ever increasing house prices, additionally the fundamental economic issue of scarcity is made extremely apparent by the limited size of the city of Toronto.
The Island of Mocha in the video is an example of a traditional economic system evolving into a market system. Every person plays a key role in this traditional system. They had fisherman, coconut collector, melon seller, lumberman, barber, doctor, preacher, brownies seller, and a chief. The Mochans got sick of trading goods all across the island just to get the things that they want or needed. The Chief decided that they would use clam shell for currency instead of trading.
Wildlife tourism has become a particularly popular trend over the years. Riding on elephants, taking pictures with lions, swimming with dolphins are only a few of the adventurous and thrilling activities that wildlife tourism provides. Even my own school is planning a trip to South Africa to participate in several of the enthralling ventures.
The lack of available social housing is mainly due to stock levels steadily diminishing each year since 1980, after tenants bought nearly half-a-million council houses under the ‘Right to Buy’ scheme. This coupled with the decline in house building; which is currently at its lowest level since 1946, has brought about a shameful lack of affordable public housing (Turffrey, 2010).
At the peak of the Great Depression, in 1933, eight years before the US entered World War II, unemployment was at an all-time high of 23.6%. Unemployment decreased by 92% between 1940 and 1944 and was at an all-time low of 1.2% in 1944. After the War was officially over in 1945, America maintained a low unemployment rate of under 5% until 1950 ("United States Unemployment Rate 1920–2012.” Infoplease.com. Infoplease.© 2000–2013 Pearson Education, publishing as Infoplease. 17 Feb. 2014 ).
“The housing market will get worse before it gets better” –James Wilson. The collapse of the United States housing market in in 2008 was one of the most devastating moments for the world economy. The United Sates being arguably the most important and powerful nation in the world really brought everyone down with this event. Canada was very lucky, thanks to good planning and proper preventatives to avoid what happened to the United States. There were many precursor events that occurred that showed a distinct path that led to the collapse of the housing market. People were buying house way out of their range because of low interest rates, the banks seemingly easily giving out massive loans and banks betting against the housing market. There were
Instead of focusing on the relationship between federal housing policy and segregation, as does Mohl, DiPasquale explores how rental housing and federal policies affect each other. In her article, “Rental Housing: Current Market Conditions and the Role of Federal Policy,” DiPasquale challenges the federal policies that were in place at the time she wrote her article. She brings to attention her belief that in the past, government policies have given much of their focus to homeowners and little to the renter. Through her research, DiPasquale had found that rental housing had become increasingly less affordable, especially to poorer tenants, who are spending a greater portion of their income on rent. This not only poses a problem to the renters, but also to the landlords, for if the renters cannot pay the rent, the landlords get a vacancy and no income from their property. She also asserts her belief that homeownership is not for everyone, and uses evidence from the recent housing crisis to support her claim. Her article calls for a revamping of current federal policies to level the playing field between home owning and renting. By doing so, households will have more choices available to them when it comes to choosing suitable housing for them
...actually a pretty good number for the economy though it was so long ago. Then during the year of 2010, the unemployment rate actually got worse rising to 10% where it is now 6.60% going down quite a bit.
Five years ago, in the middle of 1997 Australia’s economic growth had begun to upturn after a period of recession during the ’96 year. This was unmistakably shown through the composite indicators of retail trade, dwelling investment and Australian share market valuations, all concurring with one another and demonstrating the effects of an upturn in economic growth.
Nevertheless, the previous researches were either focused on the role of affordable housing associating with residential stability or educational improvement for children and employment outcomes for the adults (Manturuk, 2012). Others also emphasized that affordable housing could contribute to community-wide economic development, both for troubled and vibrant communities (Lubell et al., 2007). In addition, even the past researches started to examine the impact difference from various categories ownerships versus; however, the subcate...
Real estate agencies in Brisbane are dealt with on a daily basis. The focal point of this paper is to analyse firstly to what extent Brisbane real estate agencies match the characteristics of a perfectly competitive industry. Secondly it will examine the pros and cons of the industry in relation to welfare implications using producer and consumer surplus concepts. This paper will not state which market structure real estate agencies fall under, it is just to what extent the agencies fit into a perfectly competitive industry.
Buying and owning your home is part of the American dream. Although the dream itself has since changed, the home still remains the main focal point. Today owning a home doesn’t necessarily mean a house. People now buy duplexes, cooperative apartments, and condominiums. For some families it could take up to a couple of generations before it’s able to have the capabilities of buying a home. To many people it means a certain achievement that only comes after years of hard work. It is a life altering decision and one of the most important someone can make in their lifetime. The reasons behind the actual purchase could vary. Before anything is done, people must understand that it’s an extraneous process and it is a long term project.
The end of the year 2007 marked the beginning of the great recession. When recession began about 4.9 % of the population had no jobs. Over the years, increase in youth unemployment has been on an increase. By the end of 2008, the worst impacts of recession were eminent. During that year, about 2.6 million people were rendered jobless. This was recorded as the worst hit year in more than 60 years. More than half a million jobs were lost by the end of 2008. In 2009 the rate of unemployment rose to 7%.By last year, the rate had grown to 9.8%. Nevada used to be the best state financially. However, at the moment its unemployment is rated at 14%.
3.5 per cent, a recent high for almost 10 years. The jobless rate was higher