According to The Australian Financial Review, auction volumes jumped 4.4 per cent to 2266 nationwide this week – the biggest auction weekend since late June, as vendors rushed to sell ahead of the Christmas holiday period, data from CoreLogic shows.
Melbourne hosted the busiest auction market last week with 981 auctions, up by 4.6 per cent from a week ago, although still 59.2 per cent lower than the same time last year.
Of the collected results, 65.5 per cent were successful, up by 3.2 percentage points from last week.
Sydney’s clearance rate also rebounded to 67.5 per cent from a week ago amid early signs of confidence slowly returning into the market.
According to The Australian Financial Review, more than 1400 people have moved out of the federal government’s First Home Loan Deposit Scheme by refinancing their dwelling with a standard commercial mortgage, in a sign that the program is already playing a role in accelerating the transition into home ownership.
With more than 40,000 home-deposit guarantees issued, the number of people moving off the scheme is small but indicates that even after 2 ½ years, the program is making a difference.
The third report into the operation of the scheme, which generally allows buyers to purchase a home with only a 5 per cent deposit – the remaining 15 per cent of which is guaranteed by the government – also shows an increase in the number of younger buyers, with people in the 18-24 age range rising to 18 per cent of all guarantees in the year to June from 12 per cent in FY21.
According to The Australian Financial Review, Sydney’s already pricey house-and-land packages are set to get even more expensive over the next few years unless more land is rezoned for housing, and speedily delivered over the coming years, the Urban Development Institute of Australia has warned.
The UDIA NSW’s Greenfield Land Supply Pipeline Report identified a shortfall of 20,100 housing lots by fiscal 2030 across the Sydney mega-region (an area from Illawarra-Shoalhaven to the Hunter) even if developers were able to deliver around 130,000 housing lots “programmed for delivery” over the next eight years.
According to The Australian Financial Review, the rapid rise in interest rates and sharp falls in house prices may have spooked many investors, but some seasoned landlords are now taking advantage of the lull in the market to bulk up their portfolios.
Sydney-based investor and founder of buyer’s agency InvestorKit, Arjun Paliwal, said improving rental yields and the prospect of stabilising interest rates were proving irresistible to some.
“We’ve seen heightened inquiries from experienced investors in the recent months because yields are becoming attractive, and many of them feel like they might be missing out on opportunities to pick up properties with improving rents. They also want to get in before the rest of the pack catch on,” he said.
According to the Australian Financial Review, national home prices are expected to drop 20 per cent overall from their peak, with the bulk of the decline to come next year for most capitals except Sydney, where the correction has hit harder and earlier, according to NAB.
NAB expects housing prices in Sydney – houses and units combined – to fall 12.9 per cent this year and 9.4 per cent next year. Melbourne prices are forecast to drop 9.1 per cent this year and 14.1 per cent next year. Brisbane will slip into negative territory this year before declining 9.4 per cent in 2023, on NAB’s forecast.
According to The Australian Financial Review, CoreLogic national research director Tim Lawless tipped the housing market correction to bottom out in the first quarter of 2023 followed by a swift recovery after the rate of house price decline eased slightly in September, according to the firm’s monthly index.
However, this sooner-than-expected turnaround won’t be quick enough to stop the Melbourne housing market from reversing all the gains it made during the pandemic, Mr Lawless told.
According to The Australian Financial Review, new housing demand will pick up in the next 18 to 24 months as rising wages and falling prices combine to improve the affordability problem keeping buyers out of the market, says Stockland chief executive Tarun Gupta.
Mortgage payments equal to the “mid-40” per cent of disposable household income for Sydney – over the typical equilibrium level of 35 per cent – and at 33 to 35 per cent in Melbourne, in contrast to the “under 30″per cent figure that represented equilibrium, would come down, Mr Gupta said.
According to The Australian Financial Review, residential auction volumes jumped by 14.2 per cent over the week to 2190 nationwide to its highest level since late June, as vendors sought a faster way to sell, data from CoreLogic shows.
Preliminary clearance rates also rose slightly to 62.5 per cent, up from 61.7 per cent in the previous week, amid early signs the auction market may be stabilising.
Tim Lawless, CoreLogic research director, said more vendors were choosing to go to auction to ensure a faster sale and were now more willing to meet the market’s expectations.
According to The Australian Financial Review, Sydney developer Astute Property has capitalised on strong momentum in the build-to-rent sector to sell an entire apartment development in Marrickville off-the-plan to a private investor.
The sale came just ahead of the official launch of the 43-unit development on a 1500sq m site at 265-273 Illawarra Road in the inner west suburb, which Astute purchased from the Hatziplis family for $16.7 million last year.
While the price paid by the portfolio investor was not disclosed, it is understood a deal was negotiated below the $60 million end value of the project.
According to The Australian Financial Review, the rapid drop in house prices has slashed around five months off the time needed to save a deposit across Sydney and six months in Melbourne, as early signs of improving affordability emerge, the ANZ housing affordability report shows.
While the time saving is a small improvement relative to the 17.1 years still needed to save a deposit in Sydney and 13.6 years in Melbourne, the deposit hurdle is likely to fall further as prices continue to drop and wages start to rise.
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