What a week it’s been in property.
There has been a palpable change in mood on the ground and in a moment we’ll dig into the data to see what’s really going on.
And it’s really quite different from what the many negative headlines the media keeps throwing at us suggests.
Last week there was the news that lending criteria will be loosened allowing home buyers and property investors to borrow more.
Then on Tuesday night, the Treasurer delivered his budget to rebuild our economy and they are now extending the bridge that they built to get us to the other side and building a path to recovery by creating more jobs and giving business incentives to invest and employ, so lots to discuss this week with Dr. Andrew Wilson, chief economist of My Housing Market.
Since Covid-19 hit Dr. Andrew Wilson has been delivering a consistent message, but what I’ve noticed over the last few weeks is a change in sentiment by many other economists and now by the media which is finally starting to catch on with a changes in the headlines they are delivering.
In the last week I’ve read headlines like: –
- Housing bears face extinction as forecasts turn bullish
- Houses emerge stronger over September as Sydney and Melbourne declines soften.
- Huge sign the property market is heading up again Regional house price rises on the way
- House prices bounce in September
So watch this week’s video as Dr. Wilson provided the deeper monthly data update so you can find out what really is going on in our property markets.
This week’s Budget
The Treasurer’s strategy is to kick start the country’s economic pulse.
The huge spending, incentives, and debt have dominated media headlines but also highlight the enormity of the economic impact of the global pandemic.
Clearly, the budget is trying to boost business confidence
The estimate is for 1 million jobs to be created in the next 4 years with half subsidised by government programs
The budget is predicated on
- A vaccine will be available next year
- Consumers will spend the extra money they receive
- Businesses will spend their investment concessions and employ more workers – especially young workers.
So what does the budget have in store for Australia’s property markets?
The Budget measures to boost and business confidence, including personal income tax cuts, business tax rebates, and investment incentives will play a vital role in supporting the Australian economy and our housing markets in general.
The government announced an extension of the First Home Loan Deposit Scheme with an additional 10,000 loan guarantees for first home buyers looking to build or buy a new dwelling, including off-the-plan purchases.
The scheme’s price caps are also being raised to reflect the reality of Australia’s housing markets.
There were no changes for the HomeBuilder grant of $25,000 which will continue for new build contracts signed up until the end of December.
The government has increased the capacity of the Affordable Housing Bond Aggregator by an additional $1 billion – this scheme, managed by the National Housing Finance and Investment Corporation (NHFIC), provides lower-cost loans to community housing providers by issuing government-guaranteed bonds to institutional investors.
The government is also proposing a capital gains tax (CGT) exemption, from 1 July 2021, for formal granny flats arrangements providing accommodation for older Australians and people with disabilities
New infrastructure initiatives with a number of road, rail, and transport upgrades will help boost local economies and job prospects across a number of Australian regions.
New listings and sales surge in Melbourne as market turns
Newly reported home listings and sales have surged in Melbourne over the past week following the easing of coronavirus shutdown restrictions for home inspections.
My Housing Market reports exclusively that the number of newly reported homes listed for sale increased by a remarkable 178% over the week ending October 4 compared to the previous week.
Newly reported home sales also increased sharply over the past week – up by 46.6%.
The total number of homes listed for sale in Melbourne increased by 8.5% over the past week but remains 12% lower than the Sydney result.
Although the increases of the past week are coming from a low base and much depends on continued positive news in regard to current shutdown policies, the prospects of a sustained Melbourne market revival – similar to other capitals – are on the rise.
This week’s property data provided by Dr. Andrew Wilson of My Housing Market
Watch our video as Dr. Andrew Wilson gives his commentary on the following data:
Auction clearance rates which remain firm in Sydney last weekend.
At these levels, when more than 70% of properties put to auction sell under the hammer, price growth tends to follow.
Is this the bottom of the Sydney property market?
Newly listed homes for sale:
The markets are picking up and vendors are more comfortable and more homes have come on the market for sale over the last week, particularly in Victoria.
Watch our video as Dr. Andrew Wilson gives his commentary on the following charts:
With Melbourne buyers and agents now allowed to undertake inspections again more properties are being listed for sale in Melbourne, coming from a very low base.
And Melbourne property sales have surged, reflecting pent up demand.
The number of property sales in Sydney have remained steady.
And the Brisbane property market is performing very strongly with more sales last week than any other capital cities.
In this week’s video Dr. Wilson gives his thoughts on retail sales which are higher than they were pre coronavirus.
Rental Markets
Capital City Asking Prices
Dr. Wilson’s Property Barometer
Michael Yardney
