Property Overview for November

For the 11th time since 1990 the RBA made an official cash rate movement in order to put more monetary stimulus into the market, moving the cash rate from 0.25% to 0.1%, this is 15 basis points down an Australian Record low. The question is will the Banks pass this to the consumer or not? See the full trend here.

Confidence in the housing market has boomed. The ‘time to buy a dwelling’ index increased 10.6% to its highest level since September 2019. As with the overall Index the result for NSW (now 120.4) was outstanding with an 11.3% rise compared to 7.0% in Victoria (now 118.0) and 4.4% in Queensland (now 118.6). Read the full Westpac report here.

ANZ-Roy Morgan Consumer Confidence increased 1.6pts to 99.7 on October 24/25, 2020 and is now 10.7pts lower than a year ago on the comparable weekend of October 26/27, 2019 (110.4) and is now 5.6pts above the 2020 weekly average of 94.1. Consumer Confidence is now at its highest for over six months since March 14/15, 2020 (110.4). Download full report here.

Housing Loan Commitments data released by the ABS show an increase of 5.9% last month and year on year and increase by 25.5%.

First home buyers leading the way with a 6% last month and year on year an increase of 33.8% showing is definitely a first home buyers market and they are playing a big role taking advantage of all the new government incentives.

Investor landing on the other hand was up 5.2% last month and year on year is up by 4.2%.

APRA released their latest numbers and shows that at the end of September only 7.4% of the $1.8 trillion housing finance were deferred roughly meaning that only less than 1 out of 10 people are in trouble to repay their loans. 

“Exits from deferral continued to outweigh new entries for the third straight month in September, with $66 billion loans expiring or exiting deferral and $17 billion of entries approved or extended. Pace of exits increased significantly over the month, with total exits increasing 169 per cent from $24 billion in August. The majority of these loans have returned to a performing status.”

Read the full APRA report here.