Affordable Rentals in Australia Hit Record Lows
Affordable rental properties are becoming increasingly scarce across Australia, with the share of rentals available for under $400 a week dropping significantly over the past year. New data from PropTrack shows that in April, only 10.4% of rental properties nationwide were listed for less than $400 a week, compared to 15.5% in April 2023 and 43.2% at the start of the pandemic. In capital cities, the situation is more dire. Just 5.9% of rentals in these areas are below the $400-a-week mark, down from 10.6% a year ago. Sydney has now seen only 3.8% of its rental properties now costing less than $400 a week, declining from 22.7% in March 2020. Melbourne’s rental market has also tightened, with just 7% of rentals under $400, compared to 38.7% at the beginning of the pandemic. Brisbane follows a similar trend, with the share of affordable rentals dropping from 49.2% in March 2020 to just 7.8% in April 2024. You may read the whole article here:https://bit.ly/4aEUSbK
How Have Loan Rates Changed?
Energy-Efficient Homes Sell Faster
Despite inflated property prices, energy-efficient homes have attracted higher demand from middle-income earners, the property marketplace has said. Real estate listing company Domain released its Sustainability in Property 2024 report, which found that energy-efficient homes attract, on average, 16 per cent more listing views than homes that are not energy-efficient, despite eco-friendly homes costing more. Domain also said that the properties that were energy-efficient (including homes that were north-facing, had double-glazed glass, solar panels, and heat recovery ventilation) sold 4 per cent faster compared to non-energy-efficient homes. The report revealed that the national average cost of an energy-efficient house was 14.5 per cent (or $112,000) more expensive than non-energy-efficient homes and 11.7 per cent (or $70,000) more expensive for units. The price difference between energy-efficient homes and non-eco-friendly homes is more prevalent in Melbourne and Sydney, compared to the national average. Melbourne boasted a 28.8 per cent (or $241,750) price increase for energy-efficient homes, with Sydney noting a 23.1 per cent (or $330,250) increase in property prices. You may read the whole article here:https://bit.ly/3WZrg64
New Home Listings Sell Faster
New home listings are selling faster, particularly in capital cities, as increasing buyer confidence and a shortage of new listings drive down the time properties spend on the market, new PropTrack analysis showed. “The speed at which listings are sold fluctuates over time, decreasing when market conditions are strong and increasing when the market is in a slump,” said Karen Dellow, senior data analyst at REA Group. Pandemic’s impact on sales speedBefore the pandemic, most new listings sold in 60 days or more. However, by the end of 2020, high property demand led to more new listings being sold within 60 days than those above 60 days. This trend reversed during 2022 due to interest rate rises dampening buyer demand. You may read the whole article here:https://bit.ly/3wOV3Ui
Mortgage Stress Rises Slightly
New research from Roy Morgan showed that 30.8% of mortgage holders, approximately 1,560,000 people, were considered “at risk” of mortgage stress in April, a 0.5% increase from March. This rise still falls below the peak levels seen earlier in the year. “The pause in rate increases for the last six months since November 2023 has reduced the pressure on mortgage holders,” said Michele Levine (pictured above), CEO of Roy Morgan. Rising household incomes have helped mitigate mortgage stress. You may read the whole article here:https://bit.ly/3yw4rwx
Aussie Wages Hit Record High
March salaries reach new peak In March, total wages and salaries paid by employers in Australia reached a seasonal high of $99.5 billion, up 2.1% from the previous month, amounting to an additional $2.1bn, fresh ABS figures show. “Total wages and salaries were $99.5bn in March 2024, up 7.1% from $92.9bn in March 2023,” Jarvis said in a media release. “This annual growth rate reflects the combined effects of changes over the year in underlying wage growth, hours worked, periodic payments like bonuses, and employment growth seen in other ABS labour statistics.” You may read the whole article here:https://bit.ly/4ax9muz
Home Buyers’ Decisions Not Heavily Impacted by Interest Rates – Report
Property prices listed as Australians’ main challenge in property buying decisions About 37% of homebuyers in Australia say interest rates did not influence their decision to buy or sell property, a new property research survey found. The preliminary findings from InfoTrack’s “2024 State of Real Estate Report” follow a recent decision from the Reserve Bank of Australia to leave the cash rate on hold at 4.35% for the sixth consecutive month. The report also found that 27% percent of the respondents listed property prices as a main challenge in their decisions to buy a property, while 20% cited market conditions. You may read the whole article here:https://bit.ly/4bw0M0f
Shocking Rate Changes Last Week: What You Need To Know!
In the latest round of home loan rate adjustments, the Bank of Sydney increased several owner-occupier and investor variable rates, while multiple lenders adjusted fixed rates, Canstar reported. According to Canstar, these changes reflect broader trends in the market and economic impacts from recent policy decisions. Here’s a closer look at the latest movements in home loan rates and what they mean for borrowers. Rate adjustments across lendersThe Bank of Sydney increased four owner-occupier and investor variable rates by an average of 0.08%. Additionally, three lenders increased 77 owner-occupier and investor fixed rates by an average of 0.20%, while Me Bank cut 10 fixed rates by an average of 0.07%. You may read the whole article here:https://shorturl.at/uLTal
Housing Market Sees Increase in Vacant Rentals: Report
Australia’s housing market saw an increase in the number of vacant rental properties in April, according to a report by PropTrack.In its Rental Vacancy Rates report for April 2024, it was found that the national vacancy rate increased by 0.09%, reaching a total of 1.21%. “While vacancy eased in April, conditions remain incredibly tough for renters, with just 1.21% of rental properties sitting vacant over the month. This is less than half the level that is considered a healthy rate of vacancy,” said Anne Flaherty, an economist at PropTrack. You may read the whole article here:https://bit.ly/3WOjhsj
More Help Needed for Housing-Goal – Ray White
The Australian government has launched the $11.3 billion Homes for Australia initiative to tackle housing challenges, but a Ray White economist believes more action is needed to meet the goal of building 1.2 million new homes. Homes for Australia: Major funding allocationsThe plan allocates $9.3bn over five years to tackle homelessness, enhance crisis support, and fund the construction and repair of social housing. An additional $1bn is earmarked for essential infrastructure like roads and sewers, which are crucial for new housing developments. Another $1bn will go towards crisis and transitional accommodation for women and children escaping domestic violence. “Fundamentally, the role of the federal government is to provide housing for our most vulnerable, and this is what the budget does,” said Nerida Conisbee, chief economist at Ray White. You may read the whole article here:https://shorturl.at/dqOR0
