The ‘fixed-rate cliff’ has emerged as one of the biggest potential risks to housing market values, and overall stability in 2023. This article explains what the cliff is, and five must-know pieces of information that put the cliff into context. What is the ‘fixed-rate cliff’? Mortgage rates fell dramatically during the pandemic. This was particularly…
New data from APRA this week shows a more conservative approach to housing lending in the December quarter of 2022. The Quarterly ADI statistics report reveals the portion of new loans originated on a debt-to-income ratio of six or more dropped to just 11.0% in the quarter, after peaking at 24.3% a year earlier. The…
Australia’s COVID-induced whirlwind love affair with the country’s hottest regional cities has run its course with values declining sharply as vendor discounts climb and days on market blow out. CoreLogic’s Regional Market Update, which examines Australia’s 25 largest non-capital city regions, shows 13 areas recorded an increase in house values over the year to January…
As Australia’s rental market continues to tighten to record levels, the pace of rental growth has slowed for the second consecutive month, possibly due to a seasonal lift in rental stock combined with affordability constraints. CoreLogic’s Quarterly Rental Review for Q4 2022 shows the Australian dwelling market saw a slowdown in the pace of rent…
The CoreLogic Daily Home Value Index (HVI) hit a record decline of -8.40% on 7 January 2023 after peaking on 7 May 2022. The result takes the national housing downturn into new territory, breaking the previous record in peak-to-trough declines, when home values fell -8.38% between October 2017 and June 2019. While the housing downturn…
Springtime typically draws out buyers and sellers of real estate in Australia, with longer daylight hours, fine weather and lush gardens enhancing the look and feel of properties. For a decade prior to the pandemic, there was an average uplift of 21% in new listings nationally between winter and spring. New listings hitting the market…
Restrained spending has characterised the Albanese Government’s first federal budget. With Treasury forecasting annual headline inflation to hit 7.75% in the December quarter, key considerations for fiscal policy range include increasing productivity and moderating spending to minimise inflationary pressures. Various measures seek to increase labour force capacity, including upskilling workers through subsidised tertiary education, boosting…
As the property downturn spreads across more Australian housing markets, both buyer and seller activity has softened. However, demand for housing finance across owner occupiers that are not first home buyers (i.e., subsequent buyers defined as upgraders, movers, and downsizers) appears to be fairly resilient in the rising rate environment. Using ABS housing finance data…
At the board meeting on 4th October the RBA took the cash rate target 25 basis points higher, a lower increase than in the preceding four months. At 2.6%, the cash rate target is now at the highest level since July 2013 and surpasses the decade average prior to the onset of COVID-19 (which was…
Traditionally, spring is a time of fervent activity for the Australian property market as sales and listings increase. However, spring 2022 is expected to hit a little differently amid higher mortgage rates, weak consumer sentiment, stretched household budgets, and weaker buyer interest. Buyer segments may perform differently than others, and there’s likely to be a…
