In news this month, CoreLogic’s Cameron Kusher has revealed that 73.6 per cent of properties across Australian capitals sold for less than list price in the past 3 months. This is primarily driven by the Sydney and Melbourne markets, while the proportion of other capitals selling below list price has held firm. Bucking the trend is Hobart, which has seen a reduction in the number of properties selling below list price.
Housing finance data released in November by The Australian Bureau of Statistics (ABS) has shown a further weakening of demand for mortgages in September 2018. Over the month, the total value of housing finance commitments was recorded at $29.1 billion which was the lowest monthly value since August 2014. This is not just due to reduced investor financing ($9.8 billion for September), but a reduction in owner-occupier demand too ($19.4 billion for September).
Housing Industry Association (HIA) principal economist Tim Reardon points to the credit crunch for hindering home buyers and foresees this impact will show up in a building activity slowdown for the first half of 2019.
Debate about negative gearing policy continues, and Property Council of Australia Chief Executive Ken Morrison has called for more information to be available on the potential impact of the proposed policy for renters, investors and homeowners.
Download and read the full Market Essentials – December 2018 Report.