Australian Property

Data from the Australian Housing & Urban Research Institute (AHURI) shows that the proportion of homeowners aged 55+ with a mortgage rose from 14% in 1987 to 28% in 2015.

Some better work today from the AFR’s John Kehoe: When Reserve Bank of Australia governor Philip Lowe presented to the world’s central banking elite in the United States on the weekend, he had a none-too-subtle message for Treasurer Josh Frydenberg back in Australia.

The propaganda surrounding “tiny homes” has reached new deplorable heights, with the co-founders and owners of Wagonhaus Co Pty Ltd and Compass Hut penning the following drivel in The Mercury: The tiny house movement was born from the 2008 financial crisis in the US.

First up, the leading mortgage index is easing after its big recent ramp: Second, listing are beginning to climb into spring: The market balance looks similar to 2016/17.

Hot on the heels of losing its case against Westpac, the Australian Securities & Investments Commission (ASIC) has commenced legal action against NAB over alleged breaches of credit laws.

It’s the failure that just keeps on giving: Or, we are at the threshold of a global shock as China is forced to go ex-growth just as the RBA runs out of ammo and a bulk commodities rout rips the heart out of the Budget limiting fiscal stimulus as stock market crash bunkers the consumer.

Fletcher Building recently stated that it expects a 20% decline in new dwelling approvals in 2019-20. Its comments echo those by the Housing Industry Association (HIA), which has forecast that new building approvals will be around 20% below the most recent “boom-time average” as a consequence of tighter credit rules.

Regular reports of structural faults and flammable cladding are taking a massive toll on Sydney’s broader apartment market, with buyer confidence and viewings plunging.

Research analyst Cameron Kusher from Core Logic has given an interesting interview on Radio 4BC whereby he notes that despite falling dwelling values over the past year, there’s been no noticeable rise in sales under $400,000, especially across Sydney and Melbourne where there’s “virtually nothing available under $400,000”.

Auction clearance rates continue to strengthen, with the preliminary rate nationally surging to nearly 80%, driven by the two biggest markets: The preliminary national auction clearance rate rose to 79.6% versus 76.6% last weekend.

UBS’ Jonathon Mott is freaking out a little declaring that RBA’s cure of rate cuts may be worse the housing correction “disease”: With interest rates now ultra-low, the ability of the banks to generate a lending spread and return on equity is very challenged.

Via Martin North: Analysis released today by Digital Finance Analytics reveals that in the coming 12 months around 124,000 interest only loans will need to be switched to principal and interest loans.

Via Cameron Kusher: The national housing market has just experienced its largest downturn in dwelling values since at least the 1980s.

Why would anyone buy an apartment today?

Earlier this month, Australia’s mainstream media was awash with articles touting “tiny homes” as a solution to the nation’s growing homeless epidemic.

Via CoreLogic: The vendor discount metric measures, for properties that sell below the initial list price, the difference between the original list price and the ultimate sale price.

This, at Domain: A flood of potential property buyers from Hong Kong are approaching local migration agents, hoping to secure Australian residency ahead of buying homes in Sydney and on the Gold Coast.

Ah, flammable cladding.

Yesterday we saw Stockland trumpeting its corrupt access to the Property Council PM: Chief executive Mark Steinert says settlement defaults spiked in the year to June 2019 to 7 per cent, the highest rate experienced by Stockland since the global financial crisis.

He’s been slow to turn but the transformation into MB is now complete.

Stockland out with a shocker: The ASX should smash these dodgy charts.