The extremity of Australia’s current housing market dynamics are no clearer than in the recent change of tone detected in the Real Estate Institute of Australia’s (REIA) recent narrative. After years of demand-side spruiking the institute has recently converted to supply side activisim and is now actively pushing for reform that would make prices fall, as well leash the investor menace that is crowding out genuine household formation. After today’s Housing Finance they gave us this especially cutting release:
INVESTORS CORNER HOUSING MARKET
The Real Estate Institute of Australia (REIA) says the latest housing finance figures released by the Australian Bureau of Statistics (ABS) show, in trend terms, the first decline in the owner-occupied market for the last twelve months to January.
Housing finance figures for January 2014 show, in trend terms, that the number of owner-occupied finance commitments decreased by 0.1 per cent, following an increase of 0.1 per cent in November and a flat December 2013.
…The value of investment housing commitments continued to increase, with a rise of 1.6 per cent, in trend terms, in January resulting in nearly three years of consecutive monthly increases.
“The proportion of first home buyers in the number of owner-occupied housing finance commitments rose from its historically lowest point of 12.3 per cent in November 2013 to 13.2 per cent in January 2014. Despite the increase, it is far lower than the long-run average proportion of 19.9 per cent, despite eight interest rate cuts since November 2011.”
“January 2014 results highlight the need for all Governments to act on housing affordability,”.
A cornered market is one in which someone holds sufficient stock to control the price. It’s an upside down world when the number one real estate spruiker in the country makes so much more sense than the RBA or government.
