This Month in Review
In news this month, tighter credit conditions are still having a broad dampening effect on buyer activity. This isn’t just with investors, there has also been a considerable decline nationally in owner-occupier lending, according to CoreLogic.
Despite mortgage rates tracking around their lowest levels since the 1960s (according to CoreLogic data), consumers are displaying cautious attitudes towards the property market thanks to the upcoming federal election and potential changes to taxation policy. Economist Trent Wiltshire of Domain predicts that while Labor’s proposed reforms would have little impact on rents, they have the potential to “contribute to further price falls this year” particularly if implemented in July 2019. To date, property values have fallen in 14 of the past 16 months, nationally.
On a positive note, dwelling values do remain 18 per cent higher than five years ago, which means most homeowners are still in a strong equity position, according to Tim Lawless of CoreLogic.
While the national employment rate sits at an acceptable 5.0 per cent, the ABS reports several states are showing a marked increase in unemployment levels, most notably in Western Australia (up 0.5 per cent from Dec 18 to Jan 19) and Tasmania (up 1.1 per cent from Dec 18 to Jan 19).
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The Market Essentials Report is compiled by Buyside on behalf of Loanscape. Founded by Josh Masters, Buyside are registered buyer's agents with on the ground expertise in the Sydney and Brisbane property markets.