According to The Australian Financial Review, cashed-up owner-occupiers and stimulus-buoyed first home buyers are driving sales and pushing up housing prices across Australia – and creating a new headache for regulators seeking to rein in a tearaway market that is bringing back the spectre of unaffordable housing.
Record-low borrowing costs that are giving owner-occupiers more firepower at minimal cost are driving up prices of the most expensive properties, CoreLogic data shows. Homes in the top 25 per cent by price rose 4.1 per cent nationally over the three months to February, a pattern seen in Sydney, Melbourne, Brisbane, Darwin and Canberra.
The surging prices that last month pushed the housing market up an “extraordinary” 2.1 per cent, the fastest pace since 2003, threaten a return to the housing affordability dilemma that three years ago was top of mind for policymakers and academics.
It could be worse this time because, even with low debt-servicing costs, the burden of raising a deposit – now based on higher values – is greater than ever.
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