Weekly Property News 38th Edition 2021

Scarcity and Spending.

Hi Guys, it’s Dean OBrien from OBrien Real Estate with the 38th edition of the Property News for 2021 where real estate information is on the house.

While property prices are rising strongly and were up 20.3% in the 12 months to September, the actual percentage rise in September was the lowest since January 2021, indicating price growth could be cooling on our $8 trillion residential property market.

But while house prices are rising and rents are increasing, rental yields are falling. In the June quarter national gross rental yields were 3.4%, according to CoreLogic. The was down from 3.55% in the June quarter and 3.72% a year earlier.

Last Wednesday APRA outlined changes that come into effect from the end of October to the way lenders assess new borrower’s ability to service a mortgage. Essentially, banks now need to implement a 3% interest rate buffer on top of the market rate to determine serviceability, this is up from the 2.5% that the major banks have been applying. The change only reduces maximum borrowing capacity. Estimates from CBA suggest about 8% of borrowers do borrow at maximum capacity. Any borrowers who would have previously been just-shy of their maximum will be on or above their maximum borrowing capacity under the changes.

Across the market we are still seeing scarcity in listings even though we are in Spring. Home Buyers are not shying away from spending in this market with multiple bidders at Auction with many eager to get their hands on a property. Across the OBrien Network we saw again approximately a 30% deficit in listing volumes with 76 listings launching to the market, with 78 properties going under offer, with 91 confirmed sales, and another 100% auction clearance rate and the highest price across the network at $2.22 Million.

Here are the main new edits of the week:

  • The HIA released its September data showing that free-standing new home sales rose 2.3%. In the six months from April to September, sales were 9.3 per cent above the same period in 2019.
  • Consumer Confidence is up again for a 5th straight week, hitting a 13 week high with Sydney leading the way with Monday’s Freedom Day.
  • And lastly, US Oil Prices have hit a 7-year hit as a result of strong the market activity.

That’s all for this week, I’m Dean OBrien and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.