Market Essentials - November 2019
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October saw the third interest rate cut since June with the Reserve Bank cutting official rates to a new record low of 0.75%. The underlying cash rate in Australia has halved since June.
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Market Essentials - October 2019
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According to the latest research by Core Logic, the total number of home sales across Australia has fallen by 17% over the past year. Current sales levels are 30% below the peaks of September 2015, and listings are down 21% year-on-year.
Nationally, median sales prices have fallen by 5.2% over the past year and markets in all Australian capital cities have recorded decreases except for Canberra and Hobart. The largest price falls have been in Darwin, followed by Melbourne, Perth and Sydney.
Read MoreHave the lending floodgates really opened?
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n June the Australian Prudential and Regulation Authority (APRA) announced its first relaxation of credit controls imposed on the banks since its imposition of much tighter controls in 2017. These had been imposed to wind back a ramp in lending to property investors, to put a ceiling on interest-only lending, and to force the banks to more thoroughly consider individual borrower’s living expenses.
From APRA’s perspective, this has had the intended effect on the property market. The rampant growth in capital city property prices was controlled, and risks to the financial system implicit in highly geared investors, and even owner-occupiers holding interest-only loans in a property market “bubble”.
Read MoreMarket Essentials - September 2019
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Two interest rate cuts by the Reserve Bank during the winter months seem to be having an effect on the market already. CoreLogic data shows that combined house prices in Australia’s five largest capital cities (Sydney, Melbourne, Brisbane, Perth and Adelaide) have increased by 0.75% over the last three months. Many analysts are tipping interest rates to fall even further before the end of the year.
Read MoreMarket Essentials - July 2019
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According to a just released report from ANZ and Core Logic, Australia’s housing affordability is the best it’s been since 2016, helped by recent falls in property values in the Sydney and Melbourne markets. Sydney property prices have recorded the most significant decrease, dropping by 14.5% since their 2017 peaks.
Read MoreMarket Essentials - June 2019
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In news this month, we begin to see the property market through a post-election lens. SQM Research chief executive Louis Christopher says there has been a confidence boost to forecasts thanks to three factors: the Coalition’s election victory, a Reserve Bank interest rate cut for June to 1.25%, and the APRA proposing a relaxation of lending restrictions.
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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.