Our commentary on issues important to home owners, investors and borrowers
Business closures, a rapidly rising unemployment level and a plummeting share market have been the immediate major impacts of the unprecedented government measures put in place in March to stop the spread of the coronavirus.
The government restrictions also include measures that will directly affect the real estate market in Australia.
Read MoreRepublished from The Conversation
It’s one of the most Googled questions since the coronavirus and COVID-19 outbreak: how will coronavirus affect house prices?
The bottom line is it will be negative - prices will go down. People, up until now, have been talking about the property market developing a bit of momentum, with the interest cuts we had last year and the easing in credit conditions.
But coronavirus has changed the story for 2020.
Rate cuts and stimulus packages can only do so much.
Read MoreThe novel coronavirus (COVID-19) and its potential negative impact on the global and Australian economies is dominating the news at the moment.
This month the RBA pushed forward the decision to cut rates to a record low 0.5% to help stimulate any downturn that COVID-19 may be causing throughout the economy.
Read MoreWelcome to our first report of the new decade! What will the 20s be like for property markets in Australia?
Unfortunately, no one has a crystal ball to be able to accurately predict the future, but when it comes to property, it’s crucial to be aware of current trends to help you make the best possible buying or selling decisions.
Read MoreThe end of the year, and the decade, is fast approaching. Property is a long-term investment, so it’s a great time to see how it’s performed over the last ten years in major markets across Australia. According to the Australian Bureau of Statistics, median house prices in Australian capital cities ten years ago were as follows: Sydney $595,000, Melbourne $480,000, Brisbane $455,000, Perth $505,000, Canberra $525,000, Adelaide $397,500 and Darwin $520,000.
Read MoreIn most places, today, more money is lent to investors than first home owners. Western Australia and Northern Territory are the two current exceptions. When I started in this business it was rare than investment loan totals exceeded that lent to first home buyers. Something is wrong here if you ask me.
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.