Housing Market Recovery Gains Momentum
November 21 , 2019 | Uncategorized
The residential property market in Sydney and Melbourne has started to recover from a two-year downturn since 2017, with lower mortgage rates and a relaxation of lending restrictions confirmed by Australian Prudential Regulation Authority (APRA).
Housing prices in Australia’s two most populous cities rose 0.1 per cent and 0.2 per cent respectively, according to data released Monday by property analytics firm CoreLogic.
CommSec economist Ryan Felsman said a tentative pickup in auction clearance rates augured well.”Housing investors appear set to eventually end their recent ‘strike’ – especially given the hunt for yield across financial market asset classes,” Mr Felsman said in a note.
APRA chairman Wayne Byres announced its decision to scrap the 7 per cent serviceability floor on borrowers effective immediately in a move that is expected to increase borrowing capacity by up to 14 per cent.
One and three-year fixed rates are already below 3 per cent, a record low, and are likely to fall even further as competitive lenders chase borrowers with big deposits, steady income and low debt.
Source: SBS, CoreLogic, Australian Financial Review