Life is getting back to normal for Sydney, Canberra and Melbourne, with lockdown restrictions lifting and business as usual in the real estate market this month.
According to CoreLogic, new listings continue to rise across all capital cities, surging 28.2 per cent in the four weeks to mid-October. While this could signal relief for potential buyers, the Treasurer, Josh Frydenberg, has given the strongest indication yet that a crackdown on home lending is in the works.
Home loan approvals have jumped by more than two-thirds in 2021 through a combination of low-interest rates, looser lending standards and Government stimulus schemes. But, as house values climb, up more than 18 per cent over the past year, any increase in interest rates could trigger mortgage distress. The Council of Financial Regulators will release new home loan recommendations this week.
The push for affordable housing is back on the agenda. Rising rents and house prices across the country make it increasingly impossible for long-term renters to enter the market. CoreLogic reports that rental prices have increased by an average of 1.8 per cent annually over the past ten years. The ACT tops the list as the most expensive state or territory to rent, with a median weekly rent of $570 per week.
Download and read the full Market Essentials – November 2021 Report.