Home' InDaily : December 4 2009 Contents Australia's best home lender
is closer than you think.
Awarded Australia's Home Lender of the Year by Money magazine 2009. BankSA - A Division of St.George Bank Limited ABN 92 055 513 070 AFS Licence 240997. BSA1638_8x8
BankSA has been awarded Money magazine's Home Lender of the Year for 2009. While that's good news for us, it's great news for you. Because leading financial experts have now
done all the hard work of finding you the best place to go for a home loan. Judge for yourself at banksa.com.au, call 13 13 76 or drop into your closest branch.
SA propety market
in healthy state
Most indicators are pointing to
the property market in South
Australia being in good health.
There are rising confidence levels
as it becomes increasingly apparent the
Australian economy has emerged in a
strong position after the global economic
In South Australia the economic news
on most fronts is even better. This makes
it an opportune time for those who have
been monitoring the real estate market to
make a move.
Stock shortages which had been
noticeable over the past few months
and caused some frustration among real
estate agents who didn't have enough
houses on their books appears to be
slowly reversing as more houses come on
to the market.
Vendors who earlier in 2009 had been
holding off from putting house up for sale
while waiting for more certainty about the
economy now have more confidence.
The BankSA Trends economic bulletin
released in mid-November found the
SA economy had weathered the global
economic downturn better than other
Australian states. This was in part
because local households had better
savings habits, which provided a good
The trends bulletin, compiled in
conjunction with Access Economics,
also found that median house prices in
Adelaide rose rapidly during 2007 but
had then been treading water at just
above $350,000. But it also noted the real
estate sector had been reporting increase
interest and that may yet prove to be a
forward indicator of a renewed firming in
housing prices in Adelaide in 2010.
Underlying demand is also a factor
in the strength of the South Australian
housing market. The trends bulletin
found that SA's annual population growth
moved above 1 per cent in 2006, and had
remained there since.
On a national basis, Australia's
population growth has risen by 1.9 per
cent, which was the equivalent of an
additional 406,000 people coming to live
permanently in Australia.
December and January are
traditionally quiet in the real estate
market, but motivated buyers can
put themselves ahead of the pack by
being well-prepared and vigilant for
See your financial institution to work
out how much you can comfortably afford
to borrow, and obtain pre-approval on a
loan so if the right home comes along you
can spring into action.
Sometimes vendors who put houses
up for auction in December but don't
secure a sale on the day are more inclined
to negotiate because they want to finalise
a sale in situations such as an interstate
work transfer or having bought another
While home loan interest rates
are starting to rise, it is also worth
remembering that rates are still below
what is considered the neutral level in
The Reserve Bank is adopting a
different strategy on official interest rates
as the Australian economy picks up.
The RBA had official interest rates on
"emergency'' settings after it cut rates
aggressively from September, 2008, to
April, 2009, to try and blunt the impact of
the global financial crisis.
In October, 2009, it began increasing
official interest rates again in small
increments, but they are still under
"normal'' levels of interest rates in this
Interest rates do move in cycles. When
the Reserve Bank is lifting interest rates it
is usually in response to an improvement
in the rate of economic growth. Increased
economic growth means more jobs are
created, which in turn has an important
positive impact on confidence levels in
Chris Ward, general manager of BankSA
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