The residential buying and selling activity is not causing any excitement in the market so far this spring. There is a delay in the traditional pickup in the market, although properties auctioned in Sydney over the weekend reached 57 per cent.  The market is sluggish with houses sold well below the numbers sold this time last year. High valued houses in the eastern suburbs are curently selling well below values that were being achieved two years ago. However, Sydneys more affordable properties in the west and southwest are expected to remain firm.

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An acute Australian housing shortage of more than 500,000 homes is predicted by 2012. A steady population growth is expected to drive demand, but zoning and planning difficulties together with development charges and red tape are playing their part. For the residential property investment market it is likely to keep housing prices rising and rental growth firm.

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Could the stock market be linked to Global Warning. The coldest this the hottest that, wettest and driest etc.  And now we have an extreme volatile market with daily 500 point swings. 

Today our market has been resilient against poor DJI US overnight trading. The AU dollar which dipped below parity over the weekend is now hovering around 102 – 103 US cents. Australian Bureau of Statistics have also released figures today showing unemployment increased to 5.1 per cent during July. That represents an additional 18,000 persons.

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