Our commentary on issues important to home owners, investors and borrowers
According to Corelogic, the price performance of dwellings in Sydney over the year to June ended up being the worst out of all the capital cities, with a 4.6% fall. The median house price fell by more than 6%.
Read MoreIn news this month, AMP Capital economist Shane Oliver has stated that he is not expecting interest rates to change until 2020, a view increasingly supported by actions from the RBA who are looking to maintain a balance between economic growth and a cooling property market.
This is good news for those wanting low mortgage rates, with young Australians still very keen on buying property - ING’s Millennial Homeownership Report finding three quarters of 22-37 year olds are ready to make substantial sacrifices to save for a home beyond just forgoing luxuries.
Read MoreSeparate research by National Shelter, and the City Futures Research Centre demonstrate the magnitude of the housing affordability problem for low income households. The authors conclude that housing affordability problems are multidimensional and extend beyond the capital cities. They argue that we need to bolster the economic and social capital of the regions so that they offer greater opportunity to the vulnerable households who have gravitated there.
Read MoreOver the past 5 years in particular there has been a strong shift in the proportion of property buyers who are first home buyers – down from its historical levels of around 18% of the total market to only 13.2% in the September quarter of 2016.
Read MoreAccording to CoreLogic and NAB house price growth remains strong in NSW and particularly in Sydney. Reducing interest rates and market sentiment point to short term price appreciation but by mid 2017 we should see the effects of the record construction boom impacting property prices.
Read MoreFour days, four announcements – something is happening with interest rates.
So what does this mean for Australia borrowers? Well if you are thinking about fixing your home loan, right now may be a good time to do it – unless your lender has already moved.
Read MoreLoanscape is your information resource about lending and property.
Combined dwelling values have re-accelerated across the nation in February, with all mainland capitals soaring in value. It probably comes as no surprise that Perth claimed the top spot by gaining a whopping 1.8% for the month
Loanscape has today released its Borrowing Capacity Index for Q1/2024. It shows that the borrowing capacities of Australian individuals and families continue to decline. The more modest decline in the size of average loans being taken confirms that lower income borrowers are being disproportionately impacted by interest rate hikes: the family income required to qualify for the average loan in Australia is now 32% higher than 18 months ago.
The end of the year is fast approaching, with most capitals experiencing a strong recovery on dwelling values from the downturn that culminated at the start of 2023.
The recovery is mainly due to an influx of immigration and constricted supply, which the Government is trying to remedy with its ambitious goal of building 1.2 million homes by 2029 through HAFF.
In this months report, the $10bn Housing Australia Future Fund (HAFF) has finally passed the Senate after the Labor Government struck a deal with the Greens to add another $1bn for public and community housing. The HAFF plans to build 30,000 social and affordable homes in the next five years; though, national spokesperson for Everybody’s Home, Maiy Azize says it won’t solve the existing “shortfall of 640,000 homes”.
In this months news, CoreLogic’s Mapping the Market tool shows rent values rose in over 90% of Australian markets over the last 12 months, with Adelaide and Perth’s suburbs topping the list.
In response, the National Cabinet has introduced new measures to counter the rising housing crisis, including a New Home Bonus, a Housing Support Program and a National Planning Reform Blueprint.
It has also agreed to A Better Deal for Renters, which will streamline renters’ rights across the nation with consistent policies for eviction grounds, rental standards and limits on rent increases.
Loanscape has today released its Borrowing Capacity Index for Q2/2024. It shows that the borrowing capacities of Australian individuals and families have stabilised after the sharp decline over the past 2 years. Lower income borrowers continue to be disproportionately impacted by interest rate increases: the family income required to qualify for the average size loan in Australia is 35% higher than 2 years ago.