Australian Property

By Leith van Onselen The deflation of Sydney’s and Melbourne’s housing markets rolls on, with both jurisdictions reporting further price falls this week.

Cross-posted from Martin North: Today we walk through the worst postcodes for mortgage stress and add movement and colour with supporting demographic and financial data. Yesterday we released the May 2018 mortgage stress and default analysis update. Across Australia, more than 966,000 households are estimated to be now in mortgage stress (last month 963,000).

From ANZ: ANZ Bank has warned the pace of decline in Australia’s house prices is “quite a bit larger” than expected, and likely to last longer than it previously forecast.

By Leith van Onselen A fortnight ago, The AFR reported that “mortgage revaluations of second-hand homes in inner Brisbane are 20 to 30 per cent below their exchanged prices as oversupply fears continue to hit the Queensland capital city”.

By Leith van Onselen Back in November, The AFR reported that first-home buyers (FHBs) were desperately fighting for land in Melbourne as the city’s population soars.

Via the HIA: “New house sales fell in each of Australia’s five largest states during April, but remain at elevated levels,” said Tim Reardon, HIA’s Principal Economist.

Cross-posted Martin North: Digital Finance Analytics (DFA) has released the May 2018 mortgage stress and default analysis update. Across Australia, more than 966,000 households are estimated to be now in mortgage stress (last month 963,000).

With the Gotti foghorn away, Highrise Harry has had to turn to the AFR: “There is nothing wrong with our banks, I promise you,” Mr Triguboff told The Australian Financial Review.

Twice before Australia has managed to backfill its housing bubble.

By Leith van Onselen According to investment bank Morgan Stanley, housing sentiment has crashed in Sydney and Melbourne, adding weight to the view that both markets are facing corrections.

Cross-posted from Martin North: The root cause of the [house price] falls is simple; credit is harder to get.

CoreLogic released its auction report yesterday, which reported a further fall in the preliminary national auction clearance rate to 57.6% from 59.7% last weekend (later revised down to 56.2%).

From Mirvac: Pretty soon it’ll be the other way around.

By Leith van Onselen It hasn’t taken long for new Melbourne Lord Mayor, Sally Capp, to confirm that she’s still acting as the Victorian executive director of the Property Council of Australia.

By Leith van Onselen From the Housing Industry Association (HIA) comes another dose of hypocrisy: “Overseas migrants tend to be concentrated in the 20-30 age range, or the key first home-buyer segment,” said HIA senior economist Shane Garrett.

By Leith van Onselen The deflation of Sydney’s and Melbourne’s housing markets rolls on, with both jurisdictions reporting further price falls this week.