Home Price Growth In Extremis

The latest blog from CoreLogic makes an interesting point about home price growth. It is concentrated in Sydney and Melbourne – and will it continue? Take the two largest centres away, and overall growth is much less impressive. From May 2012 to June 2016, combined capital city home values have increased by 37.3% while official … Continue reading “Home Price Growth In Extremis”

HIA New Home Sales signal downturn ahead

The HIA New Home Sales Report, a survey of Australia’s largest volume builders, shows that total new home sales fell for a second consecutive month in May 2016, said the Housing Industry Association. “There is nothing alarming to a reversal in the trend for New Home Sales,” commented HIA Chief Economist, Dr Harley Dale. “There … Continue reading “HIA New Home Sales signal downturn ahead”

The Rise of High Rise

The recent RBA Bulletin included a section on apartment construction in Australia. They conclude that apartments have become an increasingly important contributor to new dwelling construction over recent years and in 2015 accounted for more than one-third of all residential building approvals. The majority of recent apartment construction has been located in Sydney, Melbourne and … Continue reading “The Rise of High Rise”

RBA Financial Stability Review Released Today; And All Is Well…ish

The RBA released the latest edition of the Financial Stability Review. Whilst they highlight the risks in emerging markets and higher bank funding costs, they argue local banks have limited exposure to these issues, households and business are financially sound and banks have tightened lending standards (as shown by lower LVRs and bigger affordability buffers) … Continue reading “RBA Financial Stability Review Released Today; And All Is Well…ish”

Hopes of a new urban age survive minister’s fall

From The Conversation. The resignation of Australia’s first minister for cities and the built environment after just 99 days is a setback for federal leadership in these areas. Yet enough momentum and goodwill have been generated to keep the flag flying. The greatest hope is that an urban consciousness in national public policy will be … Continue reading “Hopes of a new urban age survive minister’s fall”

Major banks reduce maximum loan amounts

In the September 2015 edition of the Property Imperative, DFA highlighted the impact of reductions in loan values being offered, as lenders tightened their lending criteria and affordability guidelines. This trend has been confirmed in more recent media reports, and will potentially make it difficult for some refinancing borrowers to get the loans they need, … Continue reading “Major banks reduce maximum loan amounts”

Capital gains stall in the final month of the year

According to the CoreLogic RP Data Home Value Index, dwelling values were absolutely flat across the combined capitals during December, with negative movements in Sydney, Adelaide and Canberra being offset by a rise in dwelling values across the remaining five capital cities. The Sydney housing market was the main drag on the December results, with … Continue reading “Capital gains stall in the final month of the year”

It will take more than piecemeal reforms to convince older Australians to downsize

From The Conversation. Many older Australians are living in larger dwellings than they need after their adult children leave the family home. The 2011-12 ABS Survey of Income and Housing shows households aged 55 and over are more than twice as likely to have three or more spare bedrooms in their home than those aged … Continue reading “It will take more than piecemeal reforms to convince older Australians to downsize”

Are Australian House Prices Overvalued?

Within the 65 pages of the IMF report there is a comprehensive section on Australian house prices.  Housing market risks they say remain heightened. They conclude that house prices are moderately overvalued, probably around 10 percent. The problem is concentrated in Sydney and is fuelled by investor credit and interest only loans. Current rates of … Continue reading “Are Australian House Prices Overvalued?”

Global House Price Index Up; Australia In The Middle Of The Pack

The IMF just released their Global House Price Index update. It is also worth noting that Australia, whilst experiencing significant house price growth and affordability issues, is in the middle of the pack. House prices are being impacted by significant international issues, not just local ones (factors such as financial globalisation, QE, low interest rates, … Continue reading “Global House Price Index Up; Australia In The Middle Of The Pack”