Our commentary on issues important to home owners, investors and borrowers
The slowing of Australia’s hottest housing markets has been welcomed by Treasury secretary John Fraser, who said it was a sign the regulator’s crackdown on risky lending has been effective.
At the same time, the QBE Australian Housing Outlook 2017-20 report has predicted price falls for apartment prices in all capital cities, except Adelaide, Canberra and Hobart over the next three years.
Read MoreSeparate research by National Shelter, and the City Futures Research Centre demonstrate the magnitude of the housing affordability problem for low income households. The authors conclude that housing affordability problems are multidimensional and extend beyond the capital cities. They argue that we need to bolster the economic and social capital of the regions so that they offer greater opportunity to the vulnerable households who have gravitated there.
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.