CommSec: Record quarterly fall in home prices

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House Prices; Private Sector Credit Capital city home prices fell by 0.2 per cent in seasonally adjusted terms in March after a downwardly revised 0.5 per cent slide in February, according to the RP Data-Rismark Hedonic Australian Home Value Index – the largest property database in Australia. Outside capital cities, prices rose by 0.2 per cent in March.

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Biggest housing slump in a decade

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Construction work done Construction work done fell from record highs, down by 2.1 per cent in the September quarter. In real terms the value of construction work done fell to $41.4 billion in the September quarter. Residential building slumped by 6.1 per cent in the quarter– marking the biggest quarterly fall in nearly a decade.

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RBA highlights pressure on bank funding

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RBA Board minutes At the last Reserve Bank board meeting members took some time to consider bank funding costs. Members explicitly stated that there was a possibility that banks would increase interest rates on loans by more than the cash rate due to funding cost pressures. “Members noted that lending rates might increase by more

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RBA sets the scene for a rate hike

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RBA Board minutes; ABARE Australian Commodities; Airfares Minutes of the last Reserve Bank Board meeting echo’s the sentiments of the Governors speech yesterday and adds further weight to the likelihood of an interest rate hike. Board members remained quite comfortable with current interest rate settings, however “observed that previous investment booms and increases in the

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Investor Signposts: Week Beginning September 19

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Upcoming economic and financial market events Australia September 20    Reserve Bank Governor speech    Foodbowl Unlimited Forum Luncheon in Shepparton September 21    RBA Board minutes (September 7)    Minutes of the last board meeting September 21    ABARE commodity forecasts      ABARE’s ‘Australian Commodities’ publication September 24    Financial accounts (September quarter)    Includes data on household financial wealth Overseas September

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Weekly market & economic update 17 September 2010

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Headline developments of the past week Global financial market regulators – known as the Basel Committee on Banking Supervision – announced tougher capital requirements for banks so that they can better withstand future financial crises. However, bank shares actually rose in response as the capital requirements had been anticipated and the time to comply was

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Consumers display caution

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Dwelling starts at six-year Consumer sentiment; New car sales; Dwelling starts The Westpac/Melbourne Institute index of consumer confidence eased in the latest month. The index fell by 5.0 per cent to a three-month low of 113.2 in September. Aussie consumers believe that bank deposits are the wisest place for savings (30.7 per cent of respondents),

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More joy for motorists; Construction loans slump

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Lending finance; Petrol price; Credit/debit cards The Australian Institute of Petroleum reports that the average Australian petrol price fell by 2.2 cents last week. Over the past fortnight prices have fallen by 4.9 cents a litre – the biggest fortnightly fall in 21 months. The national pump price is now holding at a near 11-month

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