Australian Property Values Increase to Record New Highs Not Seen Since 2003

March 1, 2021

The Australian housing market has risen to new highs, with levels being the highest since August 2003. Data reported by CoreLogic has shown that Australian home values have increased by 2.1% in February.

The average capital city house price increase was 2%, and Sydney & Hobart led the pack with an average increase of 2.5%, while Melbourne and regional markets rose an average of 2.1%.

This hike in the housing market brings Sydney’s median home value to $895K and Melbourne’s to $717K. The median home value for Australia overall is now $598K.

CoreLogic’s head of Australian research, Eliza Owens, said that fewer properties are being sold, and many are looking to buy. Also noted in their report are factors supporting this price boom, which include a combination of record low mortgage rates, improvements of economic conditions, government incentives and low advertised supply levels. One government incentive that has been extended for the first three months of 2021 is the HomeBuilder grant for new home builders.

A survey conducted by the Sydney Morning Herald found that predictions on average value for prices in Sydney to grow 5.9% in 2021 and 4.5% in 2022, while Melbourne prices will rise 4.5% in 2021 and 5.0% in 2022.

This new housing data aids the Australian dollar to hold the upside above 0.7750. AUD/USD was last seen trading at 0.7758%, up 0.7% on the day.

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Leverage

In terms of trading, leverage is borrowed capital that allows you to increase your potential profits or losses. In Forex a common leverage amount offered is 100:1, meaning that for every $1 you have you can control $100 in equity.

Margin

Margin is the collateral you must keep in your account to maintain a leveraged position.

Open A Forex Trading Account

Opening a trading account with an Australian Forex Broker is an easy process that can typically be completed within a matter of minutes. To open an account with a forex broker there are three main steps:

  1. Fill out personal information
  2. Verify account with documents
  3. Client Qualification questionnaire

To open an account, you will need to provide your full name, nationality, email and phone number. Once you’ve completed these and set up a password you will typically be asked to choose the type of account and the trading platform, as well as your base currency. You will also be asked for your country of tax residence and tax details (TFN for Australians). Typically, providing specific tax information such as TFN is not compulsory. Brokers will also ask if you are a politically exposed person. The final personal information you must provide is your contact information, including your full address and how you would prefer to be contacted

The next section is financial information. Here you must provide your employment status information, annual income bracket and liquid net worth. Once you are through this section, the broker will ask your about your trading experience (Years) on securities, options, commodities, futures, CFD’s and OTC Forex Exchange, and if you understand the risk of margined transactions.

The client questionnaire assesses whether your knowledge of CFD’s is suitable for opening an account.

Margin Call

A margin call is a demand from the broker for the client to deposit funds to meet margin requirements for open/closed positions.

Short Position

A short sell is a position where the trader anticipates the price of an instrument to decrease, and sells a borrowed asset to buy it back in the future.

Long Position

A long position is a buy position, where the trader anticipates the price of an instrument to increase.

Test2

This is a test, all systems go!

Indicator

An indicator is something that assists traders finding where to enter and exit trades. An indicator could be calculated like a moving average or RSI or a drawn support/resistance level.