Home prices up 2.8% in March qtr

AUSTRALIAN home prices powered ahead in the first three months of 2013, but economists say there's little chance another housing boom is on the horizon.

Home prices have risen by an average of 2.8 per cent across Australia's capital cities since the start of January, as buyers take advantage of low interest rates.

Hobart experienced the fastest growth, with prices up 6.1 per cent, followed by Perth, with a rise of 4.3 per cent, the latest RP Data-Rismark hedonic home value index found.

Adelaide had the weakest housing market during the quarter, with prices sliding 0.5 per cent.

CommSec chief economist Craig James said low interest rates, and improvements in the global economy had given buyers the confidence to come back into the market.

"It appears that people are starting to come back from underneath their beds and are starting to get on with life," he said.

The Reserve Bank of Australia cut the cash rate to three per cent in December, equal to its lowest level on record, while discount mortgage rates charged by the major banks have fallen to as low as 5.6 per cent.

JP Morgan economist Ben Jarman said the housing market was making up lost ground after 18 months of weakness.

"I think what we are seeing here is a bit of a relief rally," he said.

"We essentially saw house prices fall for about 18 months so what we're seeing now is just a bit of a recovery."

But he said other figures showed consumers remained hesitant to take on new debt, which meant the current rate of growth in prices was unlikely to be sustained.

"Ultimately, we're still sceptical that the housing market can give you much of a sustained lift because the trends in credit growth aren't strong enough to support that," he said.

Mr James agreed the rate of growth was likely to slow during the rest of 2013 and said, on average, buyers should expect price growth of around two to three per cent per year.

"On average I think two to three per cent growth in home prices is providing reasonable growth for home owners and won't be enough to unsettle the RBA," he said.

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'We'd love cheaper prices': Apple defends costs

Choice has some tough questions for Apple, Microsoft and Adobe. Source: Supplied

CONSUMER watchdog, Choice has some hard truths it wants tech giants, Apple, Adobe and Microsoft to answer.

The tech giants will front Parliament today at 9.30am, 11.00am and 1.00pm respectively, to explain why they are charging Australians so much more than their US customers.

Choice has five questions for the tech companies:

"1. Why is it costing Australians 70% more to rock out to AC/DC’s Back in Black on iTunes?
2. Why does it cost a graphic designer in Adelaide $3175 to buy Adobe CS6 Design and Web Premium when a creative in Los Angeles only has to pay $US1899?3
3. Why does it cost a small business in Sydney $599 to buy Microsoft’s Office Professional 2013 when a business in San Francisco only has to pay $US399.99?4

4. How many of their staff in Australia work on developing software?
5. Who sets the pricing on iTunes - Apple or the music and film industry?"

Matt Levey, head of campaigns at Choice said there is "no justification" for why Australians are paying more than US consumers for identical products.

"We have heard all sorts of excuses from the tech companies, like claims that Australian wages, rent and taxes are too high and that our warranties are onerous," he said.

"Our research shows that none of the excuses stack up and the only conclusion is that the technology companies are greedy."

"Today, Adobe, Apple and Microsoft have every opportunity to come clean on their dirty deeds," says Mr Levey.

It's only a matter of hours before the tech giants will be forced to answer these questions, and many more.

News.com.au will be covering the hearings. Tune in.

View the original article here

'We'd love cheaper prices': Apple defends costs

Choice has some tough questions for Apple, Microsoft and Adobe. Source: Supplied

CONSUMER watchdog, Choice has some hard truths it wants tech giants, Apple, Adobe and Microsoft to answer.

The tech giants will front Parliament today at 9.30am, 11.00am and 1.00pm respectively, to explain why they are charging Australians so much more than their US customers.

Choice has five questions for the tech companies:

"1. Why is it costing Australians 70% more to rock out to AC/DC’s Back in Black on iTunes?
2. Why does it cost a graphic designer in Adelaide $3175 to buy Adobe CS6 Design and Web Premium when a creative in Los Angeles only has to pay $US1899?3
3. Why does it cost a small business in Sydney $599 to buy Microsoft’s Office Professional 2013 when a business in San Francisco only has to pay $US399.99?4

4. How many of their staff in Australia work on developing software?
5. Who sets the pricing on iTunes - Apple or the music and film industry?"

Matt Levey, head of campaigns at Choice said there is "no justification" for why Australians are paying more than US consumers for identical products.

"We have heard all sorts of excuses from the tech companies, like claims that Australian wages, rent and taxes are too high and that our warranties are onerous," he said.

"Our research shows that none of the excuses stack up and the only conclusion is that the technology companies are greedy."

"Today, Adobe, Apple and Microsoft have every opportunity to come clean on their dirty deeds," says Mr Levey.

It's only a matter of hours before the tech giants will be forced to answer these questions, and many more.

News.com.au will be covering the hearings. Tune in.

View the original article here