The residential property market is Australia’s single largest, and most valuable asset class with a total estimated value of $5.2 trillion as at January 2014 according to Core Logic.

Since the combined capital city housing market began its current growth phase in June 2012 values have increased significantly in Sydney (31.2%), with growth more moderate in Melbourne (17.6%), Darwin (17.5%) and Perth (15.5%) and much slower elsewhere. Combined capital city home values have increased by 8.5% over the 12 months to November 2014 and by 7.0% over the first 11 months of 2014. The annual rate of home value growth peaked in April 2014 at 11.5% across the combined capitals, slowing to 8.5% in November. This trend has been reflected across all capital cities except for Hobart.

Core Logic RP Data anticipates that the rate of capital growth, particularly in Sydney and Melbourne will continue to moderate over the coming year. logic anticipates that values will continue to rise until such time that interest rates increase.

Households

Labour force data for January 2014 recorded the national unemployment rate at 6.0% which was the highest national unemployment rate since July 2003. In November 2014 it was steady at 6.20%.

Further to this, household income growth, consumer and business confidences are all low off the back of the mining sector slow down.

Loss making sales and Regional areas

An interesting by product of recent hikes in property values in major cities is hypothesis that other markets will improve as investors and those priced out of the expensive markets start to look for alternatives. Discounting in regional areas is lessening.

Over 12 months to January 2014, the most expensive 25 per cent of capital city suburbs recorded the greatest increase in home values, while the most affordable 25 per cent of suburbs recorded the lowest rate of value growth.

Despite realised losses on residential property declining, across the country homes that have been owned for between three and five years were most likely to experience a loss. Regional markets continue to be the most likely areas to record loss making sales.

Loss Making Home resales for the Dec 2013 QTR

*** UPDATE SEPT 2016*** Please note this process has changed. We recommend using a credit repair agency. In the comments, you will see that some people had success with a firm called MTA partners, and further we have had clients have success with We Fix Credit www.wefixcredit.com.au - we however take no responsibility for the outcomes you experience with these firms and we are not a credit repair agency. We wish you the best and please read on for some basics ! Best wishes, Liz

There are all sorts of bad things that companies or people can do to affect your credit file, one of these is a court judgement. This is when someone has taken you to court, normally the local court for a minor claim, and have won a case against you. If they have you will have a 'court judgement' listed on your credit file which is very bad for your credit. It is unlikely mainstream lenders will lend to you if the court judgement is listed. Particularly if it is more then say $100. I have had some success with assisting clients to remove court judgement from their file so here are the steps to go through.

Step 1. You absolutely must settle the debt - this means pay it out with the plaintiff. Contact them first and suggest that you are now willing to pay out the debt, if they will co-operate and sign a notice of discontinuance. While you haven't paid them yet, is the time to negotiate on this, don't pay and then ask them to sign something to assist! They may still be steaming from the fact that they had to take you to court over it.
Step 2. Once you have agreed to pay, and the plaintiff has agreed to sign on receipt of payment, Complete one of these forms with the assistance of the local court, or a solicitor http://www.ucprforms.justice.nsw.gov.au/ Form 33 "Notice of discontinuance"
Step 3. Once paid, have the plaintiff sign, and yourself sign, and any legal representatives still working on the case sign, then go to the local court where the judgement was filed and lodge the form. Hold a copy of the form on file in case it is lost.
Step 4. Wait approximately 2 weeks for it to be processed then order a new copy of your credit file from VEDA. You can obtain it FREE by using this link

If you find the court judgement still shows you will need to check with the local court that it was processed, if it was, you will you need to check with VEDA as they may have a back log.

It's a bit of a process but once removed you are now clear to apply for credit (assuming you have no other credit marks on your file!). Good luck!