This week our market review covers analysis of the country’s economic indicators used and published by the Reserve Bank. This is the data the RBA Board uses to make their decisions about interest rates and economic advice to the Federal Government.
The performance data up to 30 September 2020 shows that owner occupiers are in the box seat again this month.
This can clearly be seen from the Housing Loan Commitments charts showing investor activity lagging approximately $10,000,000,000 behind owner occupier loans. Note the slight bounce with investor lending, indicating that side of the market may have bottomed out.
The Housing Prices chart demonstrates the minimal impact the virus crisis has had on prices so far in comparison to the GFC and the credit squeeze of 2017 – 2019.
Newly advertised properties for sale appears to have flatlined which will light a fire under prices if this situation continues. We would normally expect an increase in properties for sale in September, and the lack of stock will be a cause of frustration for buyers.
The days on market – an indicator of the days a property is on the market before a purchase is agreed – continues to trend downwards along with vendor discounting. Yet another influence on increasing property prices. [For those of you who are really interested in the details . .yes . .these two charts report on August activity – this is the most up to date data the RBA can access as sales need to be registered before it can be collated.]
About the author
Debra Beck-Mewing is the Editor of the Property Portfolio Magazine and CEO of The Property Frontline. She has more than 20 years’ experience in buying property Australia-wide and has extensive experience in helping buyers use a range of strategies including renovating, granny flats, sub-division and development. Debra is a skilled property strategist, and a master in identifying tailored opportunities, homes and sourcing properties that have multiple uses. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business. As a passionate advocate for increasing transparency in the property and wealth industries, Debra is a popular speaker on these topics. She is also an author, podcast host, and participates on numerous committees including the Property Owners’ Association.
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Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.
