High rental growth likely to ease from 2024 as RBA reaches end of interest rate hikes
1 year, 5 months ago

High rental growth likely to ease from 2024 as RBA reaches end of interest rate hikes

ABC  

High rental growth is likely to ease from next year as the Reserve Bank of Australia signals it is near the end of its current interest rate hiking cycle and inflation begins to moderate. Key points: CoreLogic analysis expects rental growth will begin to ease from 2024 as the RBA nears the end of its current monetary tightening cycle It says higher rent growth is not solely due to rising interest rates, with data showing rents were increasing before the RBA began to hike rates Share housing, more supply and the return of property investors are likely to all reduce rental demand and contribute to rental growth easing New analysis from property research firm CoreLogic, which explored the correlation between higher interest rates and higher rents, suggests Australia's rental market is likely to "loosen" from 2024, as inflation begins to fall and the RBA stops rate rises. Higher interest rates mean investment property becomes less attractive, which could slow the delivery of new rental stock coming to market, and this could push rents higher." "Higher interest rates have slowed investment activity through 2022, and the first few months of this year, but they haven't been the sole cause of rental increases," Ms Owen wrote.

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History of this topic

National house prices losing steam
3 weeks ago

National house prices losing steam

ABC  

Nick Grimm: Housing prices rose nationally by 0.1% last month, but it looks like the market could be losing steam. Elizabeth Cramsie: Joe White is a real estate agent in Dunsborough in Western Australia. Elizabeth Cramsie: While rate cuts are expected at some point next year, he's not convinced it will bump up prices again. Elizabeth Cramsie: Real estate agent …

‘Buyers’ market’ as property asking prices rise more slowly than usual
2 months ago

‘Buyers’ market’ as property asking prices rise more slowly than usual

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Tim Bannister, Rightmove’s director of property science said: “This …

Housing market ‘is reviving’ amid growth in house prices and mortgage approvals
2 months, 3 weeks ago

Housing market ‘is reviving’ amid growth in house prices and mortgage approvals

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. “These trends have helped to improve affordability for prospective …

'RBA to hike in August', says investment bank as property market pushes on up
5 months, 3 weeks ago

'RBA to hike in August', says investment bank as property market pushes on up

ABC  

In short: The Australian property market will remain robust this year and next, according to several analysts. Australian property prices are expected to increase by as much as 5 per cent in calendar year 2024, according to the June PropTrack Property Market Outlook Report. "We got capital cities a little stronger at 6 to 7 per cent for the 2024 …

Australia's median rent surges to record heights with regions and outer suburbs feeling the heat
7 months, 2 weeks ago

Australia's median rent surges to record heights with regions and outer suburbs feeling the heat

ABC  

In short: Rents have reached a record high, with the median weekly rent in Australia now at $627. Perth Median rent $669 Year-on-year increase 13.6 per cent The rental market in Perth saw the highest annual rent increase of all capital cities in the last year, as well as the highest uplifting of rent values since the onset of the …

House prices continue to rise as number of landlords increase
8 months, 3 weeks ago

House prices continue to rise as number of landlords increase

ABC  

While buying a home to live in remains out of reach for many Australians, investors are flooding back into the housing market. "Despite very high interest rates and a cost of living crisis, we've been seeing housing values rising ever since, albeit at a slower rate of growth," Mr Lawless said. The unfortunate reality was that it was "damn near …

'I don't think it's a Ponzi scheme,' economist says, as median property values rise by $63,000
9 months ago

'I don't think it's a Ponzi scheme,' economist says, as median property values rise by $63,000

ABC  

In short: The price of the median national dwelling has reached an all-time high of $765,762, according to CoreLogic. Over the past 12 months, CoreLogic's Home Value Index has risen 8.9 per cent, as demand exceeds supply. CoreLogic's interactive Mapping the Market tool found that 88.4 per cent of the 4,625 house and unit markets analysed nationally saw values rise …

Rents up 29% since pre-pandemic despite recent slowdown - how fast have they risen in your area?
9 months ago

Rents up 29% since pre-pandemic despite recent slowdown - how fast have they risen in your area?

Daily Mail  

Rents have risen 29 per cent since just before the start of the pandemic, new research has revealed. Zoopla says the sharp rise in rents during the pandemic helped to push more than half of rental homes above £1,000 a month for the first time, almost double the level five years ago. One of the areas with the most rapid …

Depressing statistic that will have young Sydneysiders wanting to move to Melbourne
11 months, 2 weeks ago

Depressing statistic that will have young Sydneysiders wanting to move to Melbourne

Daily Mail  

Rents continued to grow in every capital city in the last months of 2023, but economists say there could be some relief on the horizon. The latest PropTrack Market Insight report found the median national rent has continued on its meteoric rise, increasing 1.8 per cent over the December quarter to $580 per week. This is an 11.5 per cent …

Property prices see 'significant decline' in some suburbs and regions despite housing market rebound
1 year ago

Property prices see 'significant decline' in some suburbs and regions despite housing market rebound

ABC  

Property prices "defied expectations" to hit record high values this year, but some suburbs and regional areas have bucked the trend and seen "very significant declines" in their median house prices in the past 12 months. Key points: Data from PropTrack shows suburbs of greater Hobart have seen median house prices fall by more than 10 per cent in the …

Rental homes' value to drop 16% by end 2024: ABN Amro
1 year ago

Rental homes' value to drop 16% by end 2024: ABN Amro

NL Times  

Rental homes will decline sharply in value this year and next year, ABN Amro expects. This uncertainty now makes it less attractive to invest in these homes,” said Paul Bisschop, a real estate economist at ABN Amro. He pointed out that measures have already been taken to regulate the rental market, such as increased transfer tax for investors, several municipalities …

Housing Boom and Bust Report tips property price to fall in 2024 as interest rates weigh
1 year, 1 month ago

Housing Boom and Bust Report tips property price to fall in 2024 as interest rates weigh

ABC  

Australian real estate is set for a double-dip downturn, according to a leading analyst, as interest rates finally weigh on property prices and for-sale listings surge. Key points: SQM Research is forecasting flat to falling home prices for most cities except Perth and Brisbane in 2024 High interest rates, rising unemployment and an increase in distressed sales are expected PropTrack …

Rents ‘could rise four times as fast as house prices across the years ahead’
1 year, 3 months ago

Rents ‘could rise four times as fast as house prices across the years ahead’

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Across Britain, rents could rise by 25% over the four-year period, compared with 5.5% …

The charts that show how Australia’s rental market got so broken
1 year, 3 months ago

The charts that show how Australia’s rental market got so broken

ABC  

Sometimes, being a renter in Australia just plain sucks. CoreLogic's head of residential research Eliza Owen says in this "landlord's market", requests for homelessness services have been increasing every year since 2012. "Lower income households are more likely to be in the private rental market they're seeing much higher levels of incomes required to service rents," Owen says. "In the …

National rental prices rise by 2.5 per cent as market battles high migration-led demand and housing supply shortages
1 year, 5 months ago

National rental prices rise by 2.5 per cent as market battles high migration-led demand and housing supply shortages

ABC  

National rent prices have risen by 2.5 per cent in the three months to June, as the rental market battles rising demand driven by overseas migration, a chronic shortage of available properties, and tight vacancy rates. Key points: CoreLogic data shows rental prices remain above average levels but rental growth is moderating Stronger than expected demand from migration and a …

Higher rents will help reduce rental stress by encouraging people to 'economise' on housing, RBA governor says
1 year, 6 months ago

Higher rents will help reduce rental stress by encouraging people to 'economise' on housing, RBA governor says

ABC  

Reserve Bank governor Philip Lowe says there is no immediate fix for people struggling in Australia's rental markets. Key points: RBA governor Philip Lowe say extremely high population growth is exacerbating the housing crisis He says higher interest rates will force people to economise on housing Mr Lowe says policymakers need to increase Australia's capital stock in line with population …

RBA's rate hikes creating inflation, Ross Garnaut says, calling for radical overhaul of economic policy
1 year, 7 months ago

RBA's rate hikes creating inflation, Ross Garnaut says, calling for radical overhaul of economic policy

ABC  

Australia's economy has become increasingly dominated by powerful firms that are extracting "economic rents" from the system, economist Ross Garnaut is warning. "There have been big changes over the 21st century that greatly affect Australia's capacity to deliver rising standards of living to most people in a growing population," Professor Garnaut said. Professor Garnaut said "economic rent" referred to income …

House prices rise for the first time in 11 months in March, while chronic rental shortage continues
1 year, 8 months ago

House prices rise for the first time in 11 months in March, while chronic rental shortage continues

ABC  

Property prices have gone up nationally for first time in 11 months, despite rising interest rates. Key points: CoreLogic's national property price index rose for the first time since April 2022 Sydney led the monthly gains, while Hobart's home prices continued to drop sharply A federal report is predicting a shortfall of more than 100,000 homes within the next five …

Rental hikes limited to once a year to head off housing crisis, Queensland Premier announces
1 year, 8 months ago

Rental hikes limited to once a year to head off housing crisis, Queensland Premier announces

ABC  

Rent hikes will be limited to once a year rather than every six months, Queensland Premier Annastacia Palaszczuk told parliament today ahead of a housing crisis round table. Key points: Queensland's premier says rent hikes will be capped to one a year Tenants Queensland also wants a cap on the amount rent can be increased The state's homelessness has risen …

Rent rises look set to stay, driving Australians back into share houses
1 year, 9 months ago

Rent rises look set to stay, driving Australians back into share houses

ABC  

It abruptly changed how many of us lived. "The decline in average household size since the start of 2020 – around 1 per cent – is estimated to have contributed to around 120,000 additional households being formed," RBA analysts noted in that paper. "Renting has always been more common among younger households; around half of all heads of renter households …

The cost-of-living crisis has roots in property but whether you rent or pay a mortgage, there's a dark tunnel ahead
1 year, 9 months ago

The cost-of-living crisis has roots in property but whether you rent or pay a mortgage, there's a dark tunnel ahead

ABC  

If you're a regular consumer of media, you'll likely often be warned of an impending crisis somewhere. Moody's Investors Service stated the obvious this week in a research note: "In February, new home loan borrowers needed an average 30.9 per cent of monthly income to meet monthly mortgage repayments, up from 26.4 per cent in May 2022", when interest rates …

US rent growth easing, but remains a burden for many tenants
1 year, 9 months ago

US rent growth easing, but remains a burden for many tenants

Associated Press  

LOS ANGELES — The cost of renting an apartment is easing after skyrocketing in recent years, though it remains painfully high for many Americans. The U.S. median rent rose 2.4% in January from a year earlier to $1,942, the lowest annual increase since June 2021, according to data from Rent, which tracks listings for apartment and rental houses. After surging …

Rents rising at slower pace despite 'record high' 10pc surge last year, CoreLogic says
1 year, 11 months ago

Rents rising at slower pace despite 'record high' 10pc surge last year, CoreLogic says

ABC  

Australian landlords passed on their biggest-ever rent increases in 2022, and the cost-of-living situation is unlikely to ease significantly for tenants in coming months. Key points: Rents have been rising at a slower pace in the past six months Rental vacancies are still very low New rental listings hit a 10-month high last month Last year, the nation's median rent …

What Australia's housing market has been doing over the past year
1 year, 11 months ago

What Australia's housing market has been doing over the past year

ABC  

Few sectors of the economy are as sensitive to interest rates as the property market. The fall in national values was largely driven by capital city dwelling values dropping 5.2 per cent, while regional dwelling values rose 3.3 per cent over the same period, CoreLogic figures show. Economist Maree Kilroy expects further rate hikes in early 2023, with the cash …

Why has the RBA raised interest rates yet again? High inflation — and worse is on the way
2 years, 1 month ago

Why has the RBA raised interest rates yet again? High inflation — and worse is on the way

ABC  

Pushing up interest rates isn't something the Reserve Bank does lightly. The jump in inflation from 6.1 per cent to 7.3 per cent, revealed last Wednesday, made it clear that, even after six consecutive interest rate hikes, inflation was further away from the Bank's target band than it had ever been. The RBA's 2-3 per cent inflation target band was …

Property prices drop nationally again, with Sydney diving 6pc annually and regional Australia following suit
2 years, 2 months ago

Property prices drop nationally again, with Sydney diving 6pc annually and regional Australia following suit

ABC  

Property prices are continuing to decrease nationally as higher interest rates bite, with capital city housing markets falling by up to 6 per cent in the past three months. Mr Lawless said property prices didn't drop by quite much in September as they did in August, when they dropped by 1.6 per cent in a month. "I still think a …

Perth rental market tightens further as experts tip moderate house price growth
2 years, 3 months ago

Perth rental market tightens further as experts tip moderate house price growth

ABC  

Western Australia's rental vacancy rate has dropped to its lowest level in more than a decade, as experts warn of more pain ahead for those struggling to get a roof over their heads. Key points: Vacancy rates have hit new lows in Perth and regional areas The shortage is set to worsen as more people move to WA House price …

Interest rate rises will see property prices fall further as maximum home loan sizes shrink
2 years, 4 months ago

Interest rate rises will see property prices fall further as maximum home loan sizes shrink

ABC  

Property prices may be dropping but that doesn't mean that wannabe home owners are suddenly celebrating. Key points: The Reserve Bank is set to hike the cash rate again today Banks are already winding back mortgage limits as interest rates and inflation rise Mortgage brokers say a 'feedback loop' is emerging in the property market Lenders are simultaneously winding back …

Home prices drop for the second month in a row as Reserve Bank's aggressive interest rate rises hit hard
2 years, 5 months ago

Home prices drop for the second month in a row as Reserve Bank's aggressive interest rate rises hit hard

ABC  

National property prices have fallen for the second month in a row, as higher interest rates and unaffordable prices hit demand for homes, while rental rates are rising at a faster rate than housing values. Key points: CoreLogic and Prop Track say national home prices fell in June because of rising interest rates CoreLogic says prices fell in Sydney, Melbourne, …

Relentless house price hikes spell gloom for renters under financial pressure
2 years, 7 months ago

Relentless house price hikes spell gloom for renters under financial pressure

The Independent  

A third record house price increase means renting is now the lifelong norm for a growing proportion of UK tenants, experts have warned this week, as the cost of an average home reaches £354,564. “For renters already dedicating a far higher proportion of their monthly income to housing than average mortgage holders, seeing house prices continue to rise and stock …

Rents reach ‘insane’ levels across US with no end in sight
2 years, 10 months ago

Rents reach ‘insane’ levels across US with no end in sight

Associated Press  

Krystal Guerra’s Miami apartment has a tiny kitchen, cracked tiles, warped cabinets, no dishwasher and hardly any storage space. While many economists expect that to decrease as pandemic-disrupted supply chains unravel, rising rents could keep inflation high through the end of the year since housing costs make up one-third of the consumer price index. Whitney Airgood-Obrycki, lead author of a …

Will the housing boom be over in 2022? We ask the experts
2 years, 11 months ago

Will the housing boom be over in 2022? We ask the experts

ABC  

Across Australia, first home buyers like Yolanda Zarins and Luke Andree are wondering if house prices will ever drop. The Commonwealth Bank expects house prices to rise 7 per cent next year, and is forecasting the biggest price drop in 2023 out of the major banks, of 10 per cent. "We are seeing people, on average, be able to borrow …

Australian house prices 'rolling over' as rising interest rates, affordability bite, warns ANZ
3 years, 1 month ago

Australian house prices 'rolling over' as rising interest rates, affordability bite, warns ANZ

ABC  

ANZ bank has tipped house price falls the year after next as the pandemic boom in Australian housing comes to an end. Key points: ANZ tips housing prices will rise 21 per cent this year, 6 per cent next and fall 4 per cent in 2023 The bank says more homes on the market for sale, reduced affordability and rising …

Real estate industry warns of 'perfect storm' for renters and investors
3 years, 4 months ago

Real estate industry warns of 'perfect storm' for renters and investors

ABC  

Single mum of three Alicia Johns spends almost half her weekly income on rent. Key points: The Real Estate Institute of Tasmania warns that as the state's housing market become less appealing to investors, it will put pressure on rent prices Its latest report shows that while rents are increasing, they're failing to keep up with the rising house market …

Housing boom may be halted by regulators or economic trends, analysts warn
3 years, 8 months ago

Housing boom may be halted by regulators or economic trends, analysts warn

ABC  

Some analysts are warning that Australia's multi-decade property boom may be about to end, but most agree that will not happen this year with double-digit house price growth widely expected in 2021. Key points: Property prices could increase by double digits this year, analysts say The trend could continue until the end of 2022 However, after that, there's a chance …

Housing again at forefront of Australia's economic growth, making banks happy
3 years, 8 months ago

Housing again at forefront of Australia's economic growth, making banks happy

ABC  

That's how Commonwealth Bank's boss described Australia's economic recovery last week. Mr Comyn said about 20 per cent of first home buyers were relying on guarantors to secure their loans with CBA, and "about half of those would be guarantees provided by parents" or family members. Shayne Elliot, ANZ chief executive Last month, ANZ's economics team said house prices could …

Why the RBA is reluctant to stop the housing boom
3 years, 8 months ago

Why the RBA is reluctant to stop the housing boom

ABC  

Each weekend, across the country, they line up for a quick COVID-restricted viewing. This graph shows lending to housing surged by almost 49 per cent in the year to February and the spectacular jump in first home buyer activity. The fragile economic recovery The Reserve Bank wants housing prices and stock markets to gradually rise. The Reserve Bank wants housing …

Australian property prices post biggest monthly gain in 17 years
3 years, 9 months ago

Australian property prices post biggest monthly gain in 17 years

Al Jazeera  

Australia’s housing market is booming again, with the biggest monthly price gain in 17 years dispelling fears of a Covid-induced downturn. The rapid gains have been “spurred on by a combination of record-low mortgage rates, improving economic conditions, government incentives and low advertised supply levels.” While housing prices are surging from Singapore to Canada and the U.S., a return to …

Why Australia's property prices will continue to soar
3 years, 10 months ago

Why Australia's property prices will continue to soar

ABC  

Across the suburbs, they're lining up for home inspections. A fortnight ago, Australian real estate prices lurched back into record territory — and there is no end in sight. With interest rates locked in at a whisker above zero — and with Reserve Bank assurances they'll stay put for the next four years — it's little wonder buyers are scrambling …

Warning Perth in 'rental crisis' as residential vacancy rate slumps to lowest level in 13 years
4 years, 2 months ago

Warning Perth in 'rental crisis' as residential vacancy rate slumps to lowest level in 13 years

ABC  

Western Australia's peak real estate body has warned Perth is in a "rental crisis" after the city's residential vacancy rate fell below 1 per cent for only the third time in 40 years. Key points: Perth's residential vacancy rate is at its lowest mark since March 2007 REIWA says Perth could run out of available rentals in early 2021 The …

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