State by state: A September update on Australia’s property markets
There is no doubt about it. Our property markets have turned the corner. Here's a round-up of what's happening across Australia.There is no doubt about it! Our property markets have turned the corner.
Sydney and Melbourne house values jumped through August on the back of the Reserve Bank's cut to official interest rates . While stronger over the past quarter, values in the two cities are still down over the year. House values in Sydney are off by 7.7 per cent since August last year while in
House values surge in October as rate cuts fuel markets. Skip to sections navigation Skip to content Skip to footer. FOMO - the fear of missing out - has returned to the Sydney and Melbourne property markets, with house prices in the two cities surging on the back of falling interest rates .
The Sydney and Melbourne property markets have driven the biggest monthly lift in national house prices in 16 years as falling interest rates and a shortage of supply combine to drive up values.
CoreLogic's monthly measure of values showed dwelling values across the nation's capitals jumped by 1.7 per cent in November, the biggest monthly lift since 2003.
The increase was driven by the nation's two largest property markets.
House values in Sydney alone increased by 3.1 per cent, taking the median house value to $956,249.
First home buyers to suffer from low rates
Record-low interest rates are likely to spike house prices. Here's why.Known as "quantitative easing", the RBA has taken several actions to try and stimulate the Australian economy, including cutting interest rates three times in a year to the current level of 0.75 percent.
Buyer confidence and demand has responded positively to interest rate cuts. The rise in Sydney home values is propelling the market forward. In Sydney , dwelling values recorded a 1.6 The report showed the third successive month of gains across Sydney , Melbourne and Hobart, and the second
Capital city house prices have grown at their strongest annual rate in almost seven years after interest rate cuts and investor demand lit a fire under property values in Sydney and Melbourne , according to CoreLogic. The property analytics group says Sydney dwelling prices grew 2.6 per cent in February
It was a $37,900 increase through the month, with values now up by 4 per cent this year.
It was the largest monthly increase in Sydney house values since 1988.
Melbourne was not far behind with house values there jumping by 2.4 per cent, taking the median value to $774,023.
Melbourne house values increased by almost $23,000 through November to be 2.9 per cent up so far this year.
It was the biggest monthly lift in Melbourne house values since May 2015.
Both the Sydney and Melbourne markets are in the black over the past year.
CoreLogic's head of research Tim Lawless said property markets were responding to a string of factors including low-interest rates and the end of uncertainty over tax policy in the wake of the Coalition's May election victory.
House ownership is out of reach for 'disenfranchised' millennials, says CoreLogic property analysts
One in three millennials believe they can't afford to move out until they hit 30 years old, while more than 80 per cent of Australians are worried about how to afford their first property.The latest Perceptions of Housing Affordability report by property analysts CoreLogic found 63 per cent of Australians who are still living with their parents say they cannot afford to move out of home.
Sydney dwelling values were down 4.5% over the three months ending January 2019 and Melbourne values were 4.0% lower . “To combat that economic slowdown we think the RBA may need to cut rates before the end of 2019.” The respected AMP economist Shane Oliver has predicted that house
Interest rates set to fall despite house prices going up. Sydney and Melbourne dwelling values have increased for the first time since 2017 in a sign both markets may be stabilising. " Lower interest rates and tax cuts should help household spending but a lift in turnover in the housing
"The synergy of a 75 basis points rate cut from the Reserve Bank, a loosening in loan serviceability policy from APRA and the removal of uncertainty around taxation reform following the federal election is central to this recovery," he said.
"Additionally, we're seeing advertised stock levels persistently low, creating a sense of urgency in the market as buyer demand picks up.
"There's also the prospect that interest rates are likely to fall further over the coming months and an improvement in housing affordability following the recent downturn are other factors supporting a lift in values."
Melbourne's inner east has staged the biggest recovery with dwelling values there up by 8 per cent over the past year. Inner Melbourne values have lifted by 5 per cent.
In Sydney, the best-performed areas include Baulkham Hills (up 4.3 per cent) and the inner west (up by 4.2 per cent).
Australia's central bank chief says negative rates 'extraordinarily unlikely'
IMF-G20-AUSTRALIA-INT:Australia's central bank chief says negative rates 'extraordinarily unlikely'"I'm not going to speculate on ... negative interest rates and quantitative easing in Australia, other than to say that negative interest rates are extraordinarily unlikely in my country," Lowe said during a presentation at the International Monetary Fund and World Bank fall meetings in Washington.
House prices in Sydney and Melbourne have posted their first monthly gains since 2017 in a sign the country’s worst housing downturn on record could be CoreLogic said it was an early sign that lower mortgage rates and improved sentiment were already having a flow-on effect. “I’m not prepared to
Lower interest rates and a strong local economy push Sydney ’s median house price to ,068,303, while Melbourne prices reach 3,669.
Outside Sydney and Melbourne, almost all other capital city property markets are lifting.
House values lifted by 2.2 per cent in Hobart to be 4.2 per cent up since the start of the year making it the strongest market in the country.
There were also increases in Brisbane (0.9 per cent), Adelaide (0.5 per cent), Canberra (1.8 per cent) while the struggling Perth market improved by 0.4 per cent.
Only Darwin values dropped, down by 1.8 per cent to be down 10.9 per cent so far this year.
Mr Lawless said while all markets were showing strength, the premium sector was seeing the biggest lifts.
"The stronger performance across the higher value end of the market can likely be attributed to a combination of values falling more in this sector during the downturn, as well as recent adjustments to serviceability rules which have boosted borrowing capacity," he said.
"Additionally, the scarcity value of detached homes in many of the blue-chip property markets is another factor supporting strong capital gains."
Record high household debt and a slowing economy will cause MORE people to default on their mortgage next year .
American credit ratings agency Moody's Investors Service predicts more Australians will struggle to repay their home loan in 2020. Australia's debt levels are second only to Switzerland.Australia's household-debt-to-income ratio already stands at a record 190 per cent, which is second only to Switzerland.