Surge in Loan Approvals Driven by FHBs
New loan approvals are up almost 10 per cent since autumn 2023, signalling a revival of young buyer confidence. Data from the Australia Bureau of Statistics (ABS) has revealed that new loan commitments have seen a 9.9 per cent increase since March 2023. Surprisingly, given the extreme cost-of-living stress that many Australians are facing, young buyers may be experiencing a restoration of market optimism. Dan O’Loughlin, managing director of Barry Plant Pakenham, Drouin, and Berwick, said: “Confidence is definitely back in the market, particularly among first-time home buyers who are feeling more secure about their finances.” You may read the whole article here:https://bit.ly/3Riffor
NAB: International Investors Outpace Locals in New Vic Home Buys Early 2024
More foreign investors purchased a property in a new Victorian estate or development than local investors did in the first three months of 2024. And with a report from the nation’s third biggest bank also showing the share of first-home buyers tackling new builds across the state is the lowest in the country at 22 per cent, there are signs pressure is rising on the city’s most affordably-priced homes going under the hammer. The first NAB Residential Property Survey for 2024 found just 8.6 per cent of new home sales in the first three months of the year had been to investors, while 10 per cent had been to internationals. You may read the whole article here:https://bit.ly/4bJsiHz
How Have Rates Changed?
Canstar has revealed the home loan rate movements over the past week. Two lenders – Resi and Yellow Brick Road – increased owner-occupier and investor variable rates by an average of 0.1%. Conversely, BCU Bank cut one owner-occupier and investor variable rate by an average of 0.06%, while The Capricornian reduced one owner-occupier and investor fixed rate by an average of 0.3%. The average variable interest rate for owner-occupiers paying principal and interest stands at 6.87%, with the lowest variable rate for any LVR being 5.74%, offered by Regional Australia Bank. There are 26 rates below 5.75% on Canstar’s database, consistent with the prior week. You may read the whole article here:https://bit.ly/455eapT
Inflation Slightly Up In April
The monthly Consumer Price Index (CPI) indicator rose by 3.6% in the 12 months leading to April, a slight increase from the 3.5% recorded in March, ABS reported. Michelle Marquardt, ABS head of prices statistics, highlighted the main drivers of this rise. “Annual inflation increased to 3.6% this month, up from 3.5% in March,” Marquardt said. “Inflation has been relatively stable over the past five months, although this is the second month in a row where annual inflation has had a small increase.” You may read the whole article here:https://bit.ly/4bG53hB
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
