REAL ESTATE – PRICES – AUSTRALIA

Housing prices up: insurers go to war

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Original article by Greg Brown, Jack Quail
The Australian – Page: 1 & 4 : 26-Aug-25

Modelling produced by Lateral Economics suggests that the federal government’s proposed expansion of the home guarantee scheme will adversely affect the first-home buyers it aims to help. The government will allow such people to buy a home with a deposit of just five per cent, and without the need for lenders mortgage insurance. The report, which was produced on behalf of the Insurance Council of Australia, concludes that the policy will result in house prices rising by between 3.5 per cent and 6.6 per cent nationally within its first year. ICA CEO Andrew Hall says house prices will rise by more than the cost of lenders mortgage insurance.

CORPORATES
LATERAL ECONOMICS, INSURANCE COUNCIL OF AUSTRALIA LIMITED

Housing crisis puts even safest seats at risk

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Original article by Ronald Mizen, Nila Sweeney, Tom Rabe
The Australian Financial Review – Page: 4 : 23-Apr-25

Analysis of data from Cotality suggests that the housing affordability crisis could potentially undermine support for the Coalition and Labor in traditionally safe seats at the election on 3 May. The analysis shows that a number of such seats have recorded the biggest decline in housing affordability since the previous federal election in 2022. They include the Labor seats of Watson, Blaxland and Kingsford Smith, and Coalition-held seats such as Banks and Moncrieff. Both major parties have announced new initiatives aimed at helping people to buy their own home.

CORPORATES
COTALITY, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Australian house prices hit new peak for 2025 as rate cut drives buyer demand

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Original article by Cait Kelly
The Guardian Australia – Page: Online : 1-Apr-25

Data from CoreLogic Australia shows that house prices rose by 0.4 per cent nationwide in March; it was the second successive month of house price growth, and followed a decline of 0.5 per cent over the three months to December. Tim Lawless from CoreLogic – which is rebranding as Cotality – attributes the "pretty mild turnaround" to improved consumer sentiment in response to the Reserve Bank’s interest rate cut in February. Separate data from PropTrack shows that dwelling prices rose in every capital city in March.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, PROPTRACK PTY LTD, RESERVE BANK OF AUSTRALIA

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.

CORPORATES
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.

CORPORATES
SQM RESEARCH PTY LTD, BRESIC WHITNEY ESTATE AGENTS PTY LTD

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.

CORPORATES
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.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD

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.

CORPORATES
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

Melbourne in box seat for next housing upturn

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Original article by Nila Sweeney
The Australian Financial Review – Page: 30 : 24-Jul-24

AMP’s chief economist Shane Oliver expects all capital city housing markets to benefit when the Reserve Bank eventually starts to reduce the cash rate. However, he says Melbourne’s housing market may rebound the strongest, given that it has underperformed for some time. Data from CoreLogic’s daily home value index shows that a sharp rise in listings saw home values in Melbourne fall by 0.2 per cent over the first 19 days of July, and by 0.6 per cent over the last three months. Tim Lawless of Corelogic says Melbourne home values are likely to fall further in coming months, given the volume of new listings.

CORPORATES
AMP LIMITED – ASX AMP, CORELOGIC AUSTRALIA PTY LTD