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…
While inflation has implications for housing demand, housing itself influences inflation. By understanding how inflation and housing fit together, the market outlook for the year ahead becomes a little clearer. ABS figures showed the highest annual rate of inflation in June 2022 in almost 32 years. As we head into the new financial year, annual inflation is…
As the Australian housing market enters a downturn phase, the number of sales and listings that take place nationally is tipped to fall from recent highs. In May of 2022, there were 39,790 sales estimated to have settled across Australia. While that is high for this time of year, it is 26.9% lower than in…
On the weekend, the Liberal party announced two new policies around housing and superannuation in the lead up to next week’s election. The first was lowering the age threshold for those who could access downsizing contributions to superannuation. The second was a ‘Super Home Buyer Scheme’, which would allow Australians to borrow up to 40%…
The Reserve Bank of Australia is under increasing pressure to raise the cash rate after headline and underlying inflation posted a stronger than expected result in Q1. Concerns about the impact of inflation and potentially rapidly rising interest rates on the property market abound, but a myriad of micro and macro factors should be considered…
