Our commentary on issues important to home owners, investors and borrowers
Property prices increased by 25.3% in Sydney in 2021 alone (CoreLogic). Taking a look the current slowdown, we've seen a decline of approximately -3.1% in Sydney over a 5 month period in 2022 (Feb-June 30). When we consider this perspective, property prices would have such a long way to fall before even getting near the property prices we saw in Sydney just last year.
Read MoreThe PIPA (Property Investment Professionals of Australia) Annual Investor Sentiment Survey 2021 has shed light on what investors are thinking in response to the current property market conditions.
The steady decline in housing affordability, with the annual growth rate in housing values reaching 20.3%, has made its impact. Compared to 41 per cent from last year, 71 per cent of investors now believe prices in their state or territory will increase over the next year.
The pandemic has made remote working more commonplace and investors are looking at relocating due to housing affordability and improved lifestyle factors — such as less crowded cities and less active cases —that may be gained from living in more regional areas.
Investors are also favouring regional and coastal areas for investment purposes, with Queensland becoming the leading location for offering the most potential. 58% of investors believe so, and this is up from last year’s 36 per cent.
Compared to last year’s PIPA survey, it seems the positive sentiment gained from booming property prices has now been mitigated by increasing housing unaffordability and the recent rise in COVID cases, which has impacted investors’ willingness to enter the market.
Read MoreThe COVID-19 pandemic has forced the property market to adapt, from restricted open homes, online auctions, and the switch to digital communication over face-to-face. The recent Delta outbreak has resulted in further restrictions in NSW, with Greater Sydney under lockdown since the 26th of June. While restrictions are looking to lift with NSW approaching its vaccination target, there have been some major impacts on the process of buying a property that are expected to continue temporarily.
The research process remains relatively unchanged. What has changed dramatically is the ability to thoroughly inspect a property and the shift from face-to-face to digital communication.
Due to the recent COVID outbreak and resulting restrictions, buyers must make contact with the real estate agent in advance of viewing an open home. Real estate agent Rosalie Gordon believes this has resulted in open homes being more exclusive.
“We are now screening the buyer before taking them through to open homes by asking what position they are in, whether finance is approved, if they are looking to buy property for investment or as a home, and whether they have already sold their current home.”
— Rosalie Gordon
Read MoreCameron Kusher, senior research analyst at CoreLogic discusses the Australian housing market.
Read MoreLatest Residex Property Market Report for NSW shows that prices have turned down in NSW. This is our summary of their March report on the national and local property markets.
Read MoreLatest Residex Property Market Report for NSW shows that prices have peaked. We summarise what's in store for the coming year.
Read MoreLoanscape is your information resource about lending and property.
Loanscape has today released its Borrowing Capacity Index for Q3/2024. It shows that the borrowing capacities of Australian individuals and families have started to recover 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 37% higher than 2 years ago.
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.
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.
Loanscape has today released its Borrowing Capacity Index for Q4/2024. It confirms the forecast trend that borrowing capacities of Australian individuals and families are recovering from their low levels which coincided with the last of the recent increases to borrowing rates initiated by the Reserve Bank of Australia.