CoreLogic’s latest figures are showing strong signs of an ending downturn, with some of the most-affected markets, such as Sydney, already starting to recover.
Meanwhile, Australian borrowers have received some respite this month, with the RBA deciding to pause rate hikes for April after 10 consecutive rises. The successive rate rises had garnered negative reactions from the market and industry experts, however it remains to be seen whether this will be the last of the increases, or simply a pause for the time being.
According to a recent Fitch Ratings report, the Dinkum RMBS Index for the last quarter of 2023 shows a 0.82 per cent quarter-on-quarter increase in 30+ days mortgage arrears. A trend that’s likely to continue in 2023 due to rising interest rates.
Meanwhile, nationwide unit rents have grown by 13.7 per cent. It’s the highest increase ever recorded in a 12-month period, according to CoreLogic’s latest figures. This is partially driven by record-low unit vacancy rates, now sitting at 0.88 per cent.
Despite an overall 24.1 per cent rise in dwelling rent values over the last 12 months, investment activity has slowed considerably. ABS records show a 47 per cent difference in the number of investment loans – from 21,663 in March 2022 down to 11,485 in March this year.
Download and read the full Market Essentials – April 2023 Report.