Sydney Rentals Unaffordable For Many – Anglicare

The Rental Affordability Snapshot (RAS) was originally developed by the Social Action Research Centre at Anglicare Tasmania to highlight the lived experience of looking for housing whilst on a low income. An audit of rental properties determines the extent to which on the nominated day a person on a low income is able to find … Continue reading “Sydney Rentals Unaffordable For Many – Anglicare”

First Time Loans Now 25% Higher – ABS

The ABS published revised First Time Buyer data to try and iron out some data issues. As a result in November 2014 an extra 1,566 loans (25.8%) were found. This means First Time Buyer Loans were 14.6% of new loans in November, as opposed to 11.6% reported previously. Still a low number, compared with the … Continue reading “First Time Loans Now 25% Higher – ABS”

House Price Growth Set To Fall – Fitch

Fitch Ratings “Global Housing and Mortgage Outlook” suggests House price growth is expected to moderate across the Asia-Pacific region in 2015, driven by government regulatory pressures, tightened affordability and gradual interest-rate rises. The growth slowdown will be led by Australia, where national house prices are forecast to rise 4% in 2015, down from 7% in … Continue reading “House Price Growth Set To Fall – Fitch”

UK Macroprudential Update

The Bank of England just released their latest Financial Stability report. Within the document there is a section on the implementation of macroprudential measures relating to mortgage lending. This makes an interesting contrast with the Australian Regulatory framework. Mortgage affordability test – Implemented: When assessing affordability, mortgage lenders should apply an interest rate stress test … Continue reading “UK Macroprudential Update”

APRA Reinforces Sound Residential Mortgage Lending Practices

The Australian Prudential Regulation Authority (APRA) has today written to authorised deposit-taking institutions (ADIs) outlining further steps it plans to take to reinforce sound residential mortgage lending practices. These steps have been developed following discussions with other members of the Council of Financial Regulators. In the context of historically low interest rates, high levels of … Continue reading “APRA Reinforces Sound Residential Mortgage Lending Practices”

House Prices Match Income Growth – RBA

Luci Ellis, Head of Financial Stability Department spoke to the Australian Housing and Urban Research Institute (AHURI) Panel Roundtable. You can hear her remarks, and a transcript is promised later. My notes follow. Cross country comparisons on housing markets are important, but sometimes comparisons need to be used with care, e.g. specific issues like overbuilding … Continue reading “House Prices Match Income Growth – RBA”

Investment Loans Break More Records In April

The ABS published their housing finance data for April 2014. It is slightly below expectations, but the most significant element is the further rise in investor lending, which accounted for $10.9bn, or 39.4% of loans written. The highest ever was in December 2013, when Investment loans reached 39.6%. According to the ABS, the trend estimate … Continue reading “Investment Loans Break More Records In April”

April Building Approvals Down – ABS

The ABS released the building approvals data for April 2014. They report that the trend estimate for total dwellings approved fell 1.6% in April and has fallen for four months.  The seasonally adjusted estimate for total dwellings approved fell 5.6% in April and has fallen for three months. Looking at private sector houses, whilst the … Continue reading “April Building Approvals Down – ABS”

Is The Property Investor Party Over?

Yesterday, commenting on the latest ABS data, I hinted that the DFA household research, freshly minted for March 2014 contained indications that residential property investors were trending down, for the first time in more than 18 months. So today we examine some of the data from the survey. To start, this is a plot of … Continue reading “Is The Property Investor Party Over?”

Household Incomes and House Prices

The ratio between income and house prices in an important indicator, because if it gets too far out of whack, its a sign of stress in the system. Data is often cited to show that on average, the ratio of debt to disposable income verses house prices track quite closely and so we are not … Continue reading “Household Incomes and House Prices”