This month Super funds announced plans to invest $41 billion in properties over the next 10 years in line with the government’s housing accord. According to the Industry Super Australia report though, one of their biggest roadblocks will be insufficient large-scale developments to invest in.
Beta Shares modelling shows mortgage affordability at its lowest since 1990, with an average mortgage repayment to income ratio of 42.8%. The low employment rate is keeping mortgage arrears at bay, but further rate hikes may bring these to a tipping point.
The government has announced an $800 million buyback scheme for many flood-affected residents and plans to create laws to prevent future housing development in flood and bushfire-prone zones.
This month has also been the busiest auction month since June this year, with almost 8,500 homes nationwide going under the hammer. According to CoreLogic, that is still about 40% fewer properties than the same time last year.
And after seven months of decline, CoreLogic’s National Home Value Index shows the downturn is slowing, particularly in the larger capitals. However, continuing moderation seems uncertain, pending any further rate hikes and mortgage serviceability, with most fixed-rate periods expiring at the start of 2023.
Download and read the full Market Essentials – December 2022 Report.