The extraordinary momentum carried over from 2020, coupled with monetary and fiscal stimulus measures has contributed to an unprecedented year of growth and litany of outstanding results for the Australian residential housing market. The estimated value of Australia’s residential real estate had gone from $7.2 trillion at the end of November 2020, to reach a…
Australian property values are seeing a slowdown in the monthly rate of growth. This trend is expected to carry into 2022, as affordability constraints rise, mortgage rates bottom out, and a higher number of new listings takes some pressure off market conditions. Since the monthly rate of growth in Australian dwellings peaked in March 2021…
The recently released ANZ CoreLogic Housing Affordability Report showed wide-scale declines in housing affordability through the current upswing. At the national level, the ratio of housing values to household incomes reached a new record high in June, as did the number of years it takes to save a deposit, and the portion of income required…
This month, the ABS posted a 2.2% annual increase in the Australian wage price index (WPI). The WPI measures changes in the ‘price’ of wages and salaries over time, meaning it accounts for changes in the quality and quantity of work done. The 2.2% uplift represents wages growth getting back to pre-pandemic levels and is…
Rapid growth in Australian housing values and rents over the past year has contributed to greater affordability pressures for households. ABS lending data shows first home buyer finance commitments have fallen -22.8% since January 2021, and rising rent prices have created housing stress for tenants, particularly in parts of regional Australia. Perhaps a more bizarre…
Just five months after reaching $8 trillion in value, CoreLogic has announced its estimate of the total value of residential real estate in Australia has surpassed a new record of $9.1 trillion. The surge in value follows the recent broad-based capital gains witnessed across the country, with most housing markets now beyond their peak. The…
The past few weeks have seen mounting speculation around what changes could be coming for the housing lending space. The Council of Financial Regulators, which includes the banking regulator APRA, flagged the need for sound lending standards to be maintained, with signs of “some increased risk-taking” appearing in mortgage lending. Examples of more risky debt…
Australian homeowners have cashed in on the highest level of profitability in a decade as an overwhelming majority of vendors recorded a profit according to Corelogic’s Pain & Gain Report. More than nine out of 10 home sellers sold for a gain during the June quarter, a 9 per cent increase compared to the first…
Tight listings, record-low mortgage rates, and Australia’s extraordinary growth in housing values have led to continued strong resale gains for vendors, particularly in the country’s regional and tree change markets. CoreLogic’s Pain & Gain Report shows 91.5% of resales during the June quarter recorded a nominal profit-making gain from the previous purchase price, the highest level…
The past 16 months have seen remarkable levels of adaption in the real estate sector, government stimulus and economic decline and recovery. Amid renewed and extended lockdowns, some indicators suggest the housing market has been even more resilient to lockdowns in 2021 than through 2020. But there is some suggestion not all pockets of the…
