L67 Property Operators and Real Estate Services

Home values fall but rates could save the day

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Original article by Nila Sweeney
The Australian Financial Review – Page: 25 : 11-Dec-24

Data from CoreLogic shows that house prices in Sydney have fallen by 0.4 per cent in the last four weeks, while the Melbourne housing market is down 0.5 per cent. Tim Lawless from CoreLogic expects the residential market to be "subdued" until the Reserve Bank starts reducing the cash rate. ANZ Bank economist Madeline Dunk says the central bank is likely to announce the first rate cut in May, although she adds that February remains a possibility. AMP’s chief economist Shane Oliver in turn says a rate cut in February would put a floor under house prices.

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CORELOGIC AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AMP LIMITED – ASX AMP

Glut forces home sellers to cut prices

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Original article by Nila Sweeney
The Australian Financial Review – Page: 29 : 4-Dec-24

Data from SQM Research shows that the average asking price for homes in Sydney has fallen by 0.9 per cent in the last month, while asking prices in Melbourne are down 0.7 per cent. SQM Research MD Louis Christopher says the downturn in asking prices began in October, in response to a sharp increase in the volume of properties that are listed for sale. The number of dwellings that have been on the market for more than six months has also risen sharply; BresicWhitney CEO Thomas McGlynn says many of these homes are likely to be withdrawn from sale in coming days and returned to the market in early 2025.

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SQM RESEARCH PTY LTD, BRESIC WHITNEY ESTATE AGENTS PTY LTD

Upgraders the dominant force in housing market as prices slow

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Original article by Nila Sweeney
The Australian Financial Review – Page: 33 : 27-Nov-24

Research by CBRE shows that 64 per cent of Australian home buyers in the September quarter were existing home owners who were upgrading to a larger or more expensive dwelling. This compares with 59 per cent in the March quarter. In contrast, the proportion of first-home buyers fell from 66 per cent in the March quarter to 62 per cent. Sameer Chopra from CBRE says upgraders are likely to be taking advantage of factors such as falling house prices in the major capital cities, slowing price growth in medium-sized cities and a strong jobs market. CBRE’s findings are based on a survey of residential property valuers.

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CBRE PTY LTD

Where cash buyers are splurging billions

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Original article by Nila Sweeney
The Australian Financial Review – Page: 27 & 28 : 19-Nov-24

Data from electronic conveyancing firm PEXA Group shows that more home buyers in Australia are opting to pay with cash rather than take out a mortgage. The firm’s analysis of settled residential property transactions during 2023-24 shows that $138bn worth of sales were made using cash across NSW, Victoria and Queenland; this represents a year-on-year increase of 14 per cent. Some 114,000 properties were settled with cash, an increase of 3.9 per cent. PEXA’s chief economist Julie Toth says cash buyers could help to sustain house prices, noting that interest rates have less impact on them.

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PEXA GROUP LIMITED – ASX PXA

‘It’s never going to happen’: three in five Australian renters expect to never own a home as steep rents hit

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Original article by Cait Kelly
The Guardian Australia – Page: Online : 12-Nov-24

A report from the Australian Housing & Urban Research Institute shows that 78 per cent of renters want to own a home. However, the AHURI has also found that three in five renters believe that they will never do so. The report, which is based on data from the 2021 census and other sources, forecasts that the proportion of Australians who own their home outright will fall from 67 per cent to 63 per cent over the next two decades. Separate research from Better Renting has found that 76 per cent of renters have had a rent increase in the last year, with one in six reporting that their rent was increased by more than 25 per cent.

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AUSTRALIAN HOUSING AND URBAN RESEARCH INSTITUTEBETTER RENTING

Rate call kills hopes for late spring bounce

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Original article by Michael Bleby
The Australian Financial Review – Page: 25 : 6-Nov-24

Kevin Brogan from national valuation firm Herron Todd White says the Reserve Bank’s decision to leave the cash rate unchanged on Tuesday will deter some buyers from entering the housing market. He adds that there is likely to be downward pressure on activity and prices in so-called mortgage-belt housing markets in particular. Property industry experts also suggest that the rates decision will hinder any upturn in the east coast market at the tail-end of the spring selling season.

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HERRON TODD WHITE AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA

Sydney home values heading for fall this year

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Original article by Nila Sweeney
The Australian Financial Review – Page: 24 : 1-Oct-24

Data from CoreLogic shows that home values in Sydney rose by just 0.5 per cent during the September quarter. This is the NSW capital’s lowest monthly increase in house prices since February 2023, and Tim Lawless of CoreLogic says prices could begin to fall in coming months. Meanwhile, house prices in Melbourne fell by 1.1 per cent in the September quarter; Perth recorded growth of 4.7 per cent, while house price growth in Brisbane slowed to 2.7 per cent. House prices rose by one per cent nationally during the period.

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CORELOGIC AUSTRALIA PTY LTD

Rates on hold will not help home buyers

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Original article by Nila Sweeney
The Australian Financial Review – Page: 26 : 25-Sep-24

Australian home buyers’ borrowing capacity has been cut by around 30 per cent since the Reserve Bank started reducing the cash rate in May 2022. Tim Lawless from CoreLogic says borrowing capacity – and therefore buying activity in the housing market – will not improve until the central bank starts to ease monetary policy. AMP’s chief economist Shane Oliver in turn says demand is unlikely to rise until there are clear signs that the Reserve Bank is about to reduce the cash rate.

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RESERVE BANK OF AUSTRALIA, CORELOGIC AUSTRALIA PTY LTD, AMP LIMITED – ASX AMP

Home values hit record highs, climbing in all states except Victoria

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Original article by Millie Muroi, Shane Wright
The Age – Page: Online : 11-Sep-24

Data from the Australian Bureau of Statistics shows that the total value of homes nationwide rose to nearly $11 trillion in the June quarter; this is $226bn higher quarter-on-quarter. The average house value across the nation is now more than $970,000; house values in NSW rose by one per cent during the period, to a record high of $1.22m. However, Western Australia recorded the biggest growth in average house values, up 6.2 per cent to $816,000. In contrast, the average house value in Victoria eased 0.7 per cent to $900,000.

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AUSTRALIAN BUREAU OF STATISTICS

Substantial rate cuts needed for buyers to return

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Original article by Nila Sweeney
The Australian Financial Review – Page: S4 : 10-Sep-24

The issue of housing affordability was discussed at a property summit on Monday. The median house price is just above $800,000 nationwide at present, but Eliza Owen from CoreLogic says a house would need be priced at about $500,000 to be affordable for someone on the median income. She told the summit that the pool of potential house buyers will remain limited until there is a substantial reduction in the cash rate. Meanwhile, Mortgage & Finance Association of Australia CEO Anja Pannek noted that factors such as higher serviceability buffers and interest rates are making it harder for some home owners to refinance their mortgage loan.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, MORTGAGE AND FINANCE ASSOCIATION OF AUSTRALIA