House prices are falling, so why isn’t the auction market worse? | elizabethredman
Potential buyers have easier access to credit than in 2018, allowing them to bid, but the amount they can borrow has declined in recent months.Property listingsPotential home buyers are able to get a loan more easily now than during the last property downturn, but the amount of money they can borrow has dropped as interest rates rise.
Intense scrutiny due to the financial services royal commission prompted banks then to vet borrowers’ expenses, even asking how many coffees they paid for. This slowed down loan approvals and made it harder for buyers to bid at auction.Now, mortgage brokers say there is less focus on individual spending, even as rising interest rates push property prices lower.
One bank that used to scrape its customers bank accounts to calculate living expenses has now shifted to accepting customer-declared living expenses, he said. Several bank economists expect property prices to fall between 15 per cent and 20 per cent peak to trough, including Barrenjoey which on Mondayat a cash rate of 2.85 per cent. So far, Sydney values have fallen 7.6 per cent and Melbourne 4.9 per cent, while Brisbane is down 2.9 per cent and Perth has edged back 0.2 per cent.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Housing unaffordability hits grim new peakFalling prices offer some relief for Australia’s unaffordable housing, but rising rates will make loan servicing harder before it gets easier.
Read more »
Luxury homes hardest hit by property slumpHomeowners in Australia’s most expensive suburbs are bearing the brunt of the national property price downturn with prices falling 10pc on an annualised basis
Read more »
Houses to be hit harder than flats by price falls, RBA saysHead of domestic markets says rate rises will depress commercial and residential property prices but wider risks appear contained
Read more »
Barrenjoey tips Sydney house price falls of 25pc, warns on recessionThe RBA will tip Australia into recession and cause a ‘material’ property downturn if it lifts rates as aggressively as expected, Barrenjoey’s Jo Masters says.
Read more »
Australia house prices LIVE: Reserve Bank says home loan borrowing capacity reduced by 20pc since MayPrime Minister Anthony Albanese said China “needs to come to terms with Australia’s standing up for values” before attending Queen’s state reception with Chinese delegates; around 500 dignitaries attend “reception of the century”. Follow updates here
Read more »