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Housing affordability deteriorated further over the March 2017 quarter

With dwelling values rising at a faster pace than household incomes, housing affordability has worsened over the first quarter of 2017.  CoreLogic measures housing affordability across four measures and three of these four measures have seen affordability deteriorate over the quarter. The four affordability measures that CoreLogic calculate are: Dwelling price to household income ratio […]

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Demographic data reveals that the rate of population growth accelerated in 2016

The latest demographic data from the Australian Bureau of Statistics (ABS) shows that the national rate of population growth accelerated in 2016.  Australia’s population continues to increase rapidly with the majority of population growth occurring with the two most populous states.  New South Wales and Victoria combined accounted for 70.5% of national population growth over […]

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The number of properties mortgaged is climbing however, values are increasing faster than outstanding debt

Earlier this week the Australian Bureau of Statistics (ABS) released its residential property prices indexes for the March 2017 quarter.  A valuable data set from the release relates to the value of dwelling stock and the number of residential dwellings.  Both of which have increased over the quarter.  When this data is paired with data […]

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The housing investment slowdown is upon us (for at least a while)

The latest housing finance and housing credit data confirm that the level of activity from investors in the housing market is slowing. Australian mortgage lenders have been rationing credit to the investor segment and lifting mortgage rates and these changes are starting to bite with investor demand now slowing.  It remains to be seen if […]

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Is sentiment, particularly housing sentiment, turning negative?

The Westpac and Melbourne Institute’s consumer sentiment index for June 2017 was released earlier this week.  The Index was recorded at 96.2 points which was the lowest monthly reading for the index since April 2016. When the Consumer Sentiment Index sits below 100 points it means that consumers are more pessimistic than optimistic.  The Index […]

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Downturn refresher: what happens when prices start falling?

When we think about the housing market we tend to focus on when values rise but in the recent past values have fallen in each capital city; this week we look at the magnitude and duration of these falls in the past. Throughout the past 20 years it has been much more common for combined […]

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Investor demand and refinancing by owner occupiers continues to stall in April 2017

The latest housing data from the Australian Bureau of Statistics (ABS) shows that while lending to owner occupiers is fairly flat, demand from the investor segment has continued to stall.  When you dig deeper, the data shows that owner occupier demand is growing for new lending as refinancing stalls. The April 2017 housing finance data […]

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It looks as if sea change and tree change is gathering pace

The latest internal migration data shows that an increasing number of inter-state and intra-state population movements are to either sea change/tree change regions or the outskirts of the capital cities.  Each year the Australian Bureau of Statistics (ABS) publishes data on internal migration across the regions of Australia. Internal migration data counts the number of […]

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NSW first home buyer demand set to surge post July 1

Abolishing stamp duty for first home buyers is likely to create some headaches for eligible buyers who have recently entered into contracts. Additionally we can expect first home buyer activity to stall before surging higher on July 1 2017. The long term outcome may be self-defeating due to higher demand pushing up prices. The decision […]

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High LVR lending is easing up with a further slowdown expected

Data released by the Australian Prudential Regulation Authority (APRA) earlier this week has shown that high loan to value ratio (LVR) lending continues to fall indicating new buyers are in many instances using larger deposits.  The latest authorised deposit-taking institution (ADI) property exposures data for the March 2017 quarter revealed the ongoing trend as a […]

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