This Month in Review
This month the Federal Government announced the extension of the JobKeeper program for a further six months, along with the JobSeeker supplement also being extended.
Combined with more targeted extensions to the ‘mortgage holiday’ on repayments, many Australians will be breathing a sigh of relief as they’re given additional time to manage their financial affairs through the pandemic.
The Australian Banking Association announced that “the next stage of support will be specifically targeted to getting people back on repayments while continuing to help those hardest hit”.
Despite signs of rebounding rental values over the six months to March 2020, Core Logic’s Head of Research, Eliza Owen, stated that “closed international borders created a significant shock to rental demand, as historically the majority of new migrants to Australia have been renters”.
The ABS reports that new finance commitments for the purchase of property fell by a record 11.6% during May 2020; the largest single monthly drop in the 18-year data series. However, when comparing this data against Core Logic’s sales volumes estimates, it appears that while housing finance may have bottomed out in May, sales activity rebounded 29.5% over June, indicating growing buyer interest post-lockdown.
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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.
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Disclaimer: This article is intended to provide general news and information only. While every care has been taken to ensure the accuracy of the information it contains, neither Loanscape nor its employees can be held liable for any inaccuracies, errors or omission. All information is current as at publication release and the publisher takes no responsibility for any factors that may change thereafter. Readers are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this article as a substitute for professional advice.
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.