The Australian housing market has been in a bit of a slump, due to the underperformance of the Australian dollar. This trend saw a decline in Sunshine Coast loans of .2% in July 2015, according to statistics from the Reserve Bank of Australia. This trend is turning around, luckily, if the 2.9% increase in housing loans for owner-occupiers in August 2015 is any indication. This is up an impressive 8.8% from August 2014, indicating a general turnaround of the Australian economy, and being particularly good news for the Sunshine Coast housing industry.
How The Rest Of The World Is Affecting Sunshine Coast Loans
Australia may be hundreds of kilometres from its nearest neighbors, but the nation is just as susceptible to global trends as any other country. The rising and falling fortunes of the Australian dollar – and thus, the Australian housing market – have a lot to do with lower interest rates and the decline of the American dollar.
A rising Dow Jones Industrial Average and NASDAQ in the United States, combined with uncertainty about the Federal interest rate, has been playing a large part in the downward trending American dollar. This trend saw an increase in the EUR/USD, which rose to a three-month high in August 2015, to 1.1387.
The Australian dollar rose to a six-week high, in August 2015, to 0.7344 AUD/USD.
Commodities are predicted to rise, thanks to lowering prices and higher demand for oil. OPEC Secretary-General El-Badri was quoted as saying he expects oil demand to grow, with non-OPEC supply diminishing, which should lead to “a more balanced oil market in 2016.”
All of which speaks to a general increase in the Global Economy, in general. Which is good news for the Australian Dollar.
With a strong dollar and low interest rates, this is a great time to take advantage of both car finance on the Sunshine Coast and Home Loans On The Sunshine Coast.
Get in touch today, and start living your dreams!