March 11, 2011 – No one can predict when and what calamity will hit a place. Calamities will never choose nor schedule what place to hit. It is, therefore, very devastating for a place to be hit by a calamity. This is because everything will drastically change when calamity arrives and spreads its horror. It will affect all aspects of life in a given community.
Recently, Australia just experienced a little rattle in their homeland when a calamity like flood struck Queensland and, thus, affected the community right away. It particularly shook the economy at large. Such disturbance lowered the confidence of home buyers to buy homes for sale and in return, also affected the number of home loans at the same time.
In January, the number of home loans approved lowered in percentage right after the flood in Queensland took place. It was then announced by the Australian Bureau of Statistics (ABS) that home loans approved in January had fallen 4.5 percent, to a seasonally adjusted 48,871.
Despite this tragedy taking place, Australia learned how to cope with this event and Australia learned to get back what it had lost. Fast recovery was done and renovations are already almost done. Now with these actions, economists expect these approved loans to increase.
Economists would expect a 0.5 percent rise in committed home buyers for house financing. According to ICAP senior economist Adam Carr, home loans may have decreased due to the flood but will do a rebound by this month. One will just have to be optimistic so as this prediction will happen.
Australia is undertaking its renovations to gain back its losses and so as not to further increase their losses. Thus, with these renovations, cash will flow in and will end up stabilizing the economy again and will build confidence on buyers. In the end, home loans will be approved and will increase its approval rate.
According to the Wall Street journal, The Australian Bureau of Statistics said total housing finance by value fell by 5.3 per cent in January, seasonally adjusted, to $20.29 billion. But this fall will hopefully gain back once the economy is fully healed.
