Our commentary on issues important to home owners, investors and borrowers
Despite phase one of the Federal Government’s Covid-19 stimulus coming to an end this month, there’s been a positive turn in housing market sentiment. Consumer confidence has increased, and according to Core Logic, new listings rose, with six of the eight capital cities recording a rise in home values over the month.
Read MoreWhile the property market is not immune to the Covid-19 economic fallout, sellers are returning. According to Core Logic, most plan on selling for “lifestyle reasons rather than economic hardship”. It’s expected that buyer confidence will increase over the coming months and that well-located homes and investment properties will attract healthy competition at auction.
Read MoreThis 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.
Read MoreDownwards pressure on home values has remained mild to-date, with capital city dwelling values falling a cumulative 1.3% over the past two months. A variety of factors helped to protect home values from more significant declines, including persistently low advertised stock levels and significant government stimulus. Additionally, low-interest rates and forbearance policies from lenders have helped to keep urgent sales off the market, providing further insulation to housing values.
Read MoreEconomists have forecast a drop of between 11 and 32% in house prices over the next three years according to Commonwealth Bank, driven by the end of Government stimulus measures in September. For now, reduced stock levels, willing buyers and sellers transacting on property, and a lower than expected influx of distressed property sales are all preserving property values.
Read MoreAs consumer confidence hit a record low in April, the real estate market is now faced with buyers and sellers abandoning the market until there’s more certainty. The number of new properties listed for sale in the 28 days to April 19 has fallen significantly, 28.7% below the same period last 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.