Australian Property

From our Chris today: To APRA’s immense credit, it has managed to pull off a minor miracle: bursting the bubble during the boom.

Via the AFR: As Sydney and Melbourne house prices continue to fall, Mr Shorten signalled that an originally planned July 1, 2019 start date could be deferred until 2020.

By Leith van Onselen CoreLogic’s latest dwelling sales data was more bad news for those groups heavily reliant on property transactions, such as real estate agents and state governments (via stamp duty).

UBS’ Jonathon Mott is out with more today on the mushrooming credit crunch: The banking sector is facing a period of substantial and sustained earnings pressure which is likely to last several years.

Via Martin North: DFA has released the November 2018 mortgage stress and default analysis update. Across Australia, more than 1,015,600 households are estimated to be now in mortgage stress (last month 1,008,000).

By Leith van Onselen Philippe Brach, CEO of Multifocus Properties and Finance, has penned a hilariously contradictory article in Your Investment Property attacking Labor’s proposed negative gearing reforms.

By Leith van Onselen Several commentators have warned that Sydney and Melbourne are facing far worse housing correction than Perth, whose housing market has been plunging for more than four years.

Via Banking Day: Australia’s mortgage broking industry is preparing to engage in the 2019 Federal Election campaign, with plans to enlist support from home borrowers who want lenders to continue paying commissions.

Must be a slow news day because this is not new nor an exclusive at the AFR: The timing of the next federal election means investors could have a year longer than anticipated before Labor’s proposed cuts to negative gearing and capital gains tax breaks can start.

Via Martin North: As home prices fall, the risk of households with mortgages falling into negative equity is rising.

Weeoo, weeoo, weeoo.

By Leith van Onselen With Australia’s housing correction now dragging on for 14 months, and peak-to-trough declines totalling 5.5% at the capital city level, it’s an opportune time to compare this correction to prior episodes.

Via the AFR: Suncorp is attempting to improve insights on living expenses and lending on mortgage borrowers by requiring a minimum of three months statements for all credit liabilities, including home and personal loans, overdrafts, lines of credit and any other loan facility statements.

More folks turning uber-bearish.

Via the AFR: …”Now is not the time to be flipping,” director at Ray White Surry Hills Ercan Ersan said.

By Leith van Onselen Place Advisory residential research director, Lachlan Walker, claims that Brisbane house prices are about to take-off: BRISBANE home prices are about to take off at a time when the nation’s overall housing market is in its biggest slump since the global financial crisis.