House prices: Ideas and solutions range from dangerous to disastrous
8 years, 1 month ago

House prices: Ideas and solutions range from dangerous to disastrous

ABC  

Addicts sometimes come up with all kinds of weird excuses and solutions for their life problems without acknowledging the core issue of their addiction. Yesterday, the RBA's assistant governor economic Luci Ellis offered up a number of reasons why Australians shouldn't be too concerned about the level of the nation's home prices and household debt. Rich hold debts Secondly, Dr Ellis argues that Australia's high mortgage debts are relatively safe because the biggest debts tend to be held by higher income households. "So it's surprising that as housing prices have risen, the distribution of loan-to-valuation ratios — the converse of the deposit — hasn't shifted up over time." For the financial system and economy as a whole, widespread no-deposit lending would probably push home prices even higher and then expose banks to large losses and potential collapse in the event of a real estate crash.

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History of this topic

How Australia's housing market spun out of control — and what we can do to fix it
2 weeks, 3 days ago

How Australia's housing market spun out of control — and what we can do to fix it

ABC  

Property investment is ingrained in the Australian psyche, but is it too easy to cast landlords as the villain in our housing crisis? The bank regulator, Australian Prudential Regulation Authority or APRA, under the leadership of Wayne Byres, threw cold water on another investor-led housing boom in the mid-2010s by using "macroprudential tools", such as limits on investor lending growth …

Housing Hostages: Australia in 2050
3 weeks, 1 day ago

Housing Hostages: Australia in 2050

ABC  

Sam Hawley: Imagine it's 2050 and the housing bubble in Australia never burst. Sam Hawley: Michael, we know the increasing cost of housing is causing enormous economic pain and really human hardship, let's face it. Michael Janda: Yeah, so Sam, it really makes us look like a lot of other developed countries, particularly ones that have expensive housing. Sam Hawley: …

Australian home prices tipped to keep falling in early 2025
2 months, 2 weeks ago

Australian home prices tipped to keep falling in early 2025

ABC  

Australian home prices are set to keep falling in the first half of this year, according to a wide range of analysts, but they also expect the decline to be small and short-lived. "There are numerous signs of softening in the Australian property market," wrote AMP's chief economist Shane Oliver, before listing them: Auction clearance rates have cooled from their …

House prices rise just 0.1 per cent in weakest result since January 2023, CoreLogic data shows
3 months, 3 weeks ago

House prices rise just 0.1 per cent in weakest result since January 2023, CoreLogic data shows

ABC  

National home prices are losing momentum and anticipated interest rate cuts are unlikely to stop falls in house prices next year. New CoreLogic data shows house prices increased 0.1 per cent nationally in the last month of spring — the weakest Australia-wide result since January 2023. Brett D'Souza says he "made mistakes" when he tried to sell his home without …

As it happened: Huge spike in uninsured home borrowers, Cbus execs apologise to senate inquiry, Orica boss upbeat on Trump 2.0
4 months, 1 week ago

As it happened: Huge spike in uninsured home borrowers, Cbus execs apologise to senate inquiry, Orica boss upbeat on Trump 2.0

ABC  

We heard from consumer groups about the risks to individuals from having to drop their insurance coverage, but there's also some pretty worrying modelling on the risks to the banking sector from Sharanjit Paddam, an actuary and the principal of Finity Consulting. "Our latest figures show that 1.6 million households in Australia have unaffordable insurance, and we define that as …

Easing lending rules would make it easier for first home buyers, but would it create financial instability?
4 months, 3 weeks ago

Easing lending rules would make it easier for first home buyers, but would it create financial instability?

ABC  

As the Reserve Bank meets to consider whether to follow in America's footsteps and cut interest rates, housing affordability is again centre stage of the political debate. They point a worsening picture of mortgage stress picture now that the Reserve Bank has raised the official cash rate to 4.35 per cent and variable interest rates are hovering around 6 per …

In New Zealand, interest rates have started to fall. This is the impact on the housing market
6 months, 3 weeks ago

In New Zealand, interest rates have started to fall. This is the impact on the housing market

ABC  

Across the ditch, economists say New Zealanders can now see "the light at the end of the tunnel" of high interest rates after the country's central bank announced the first cut in more than four years and signalled more were on the way. "The first cut is the deepest, to quote Rod Stewart," ANZ chief economist in New Zealand Sharon …

Mortgage borrowers choosing to default on other bills before missing a repayment as arrears rates tick up
7 months, 2 weeks ago

Mortgage borrowers choosing to default on other bills before missing a repayment as arrears rates tick up

ABC  

Financial services consultant Andy Barrow used to be a home owner in the nation's most expensive city. Households falling behind on other bills Housing loans are "in arrears" when borrowers miss their minimum scheduled payment but are still expected to make good on their loan, according to the Reserve Bank. "Mortgage arrears in our data set are sitting at around …

Untold riches and enormous debt: why property will hold sway at the next RBA meeting
8 months, 1 week ago

Untold riches and enormous debt: why property will hold sway at the next RBA meeting

ABC  

For richer, for poorer. Australia's world record-breaking mortgage debt levels mean further rate rises could tip the economy into recession. But one more rate hike could change that Photo shows An out of focus man and woman walk past a building with glass sliding doors and a sign reading Reserve Bank of Australia. When prices started to tank after the …

Young woman with almost $100,000 in savings slams Aussie 'lie'
9 months ago

Young woman with almost $100,000 in savings slams Aussie 'lie'

Daily Mail  

A woman has revealed her frustrations about being unable to get her hands on a 'decent' property even with almost $100,000 in savings. 'I think that you are sold the lie that you work hard, you save a lot of money and you'll be able to get into the property market because that's exactly what I've done,' the woman said …

Top CEO Matt Barrie exposes the huge problem with Australia that's the 'root of all evil' - and why many young Aussies may have the same grim vision of their future
9 months, 3 weeks ago

Top CEO Matt Barrie exposes the huge problem with Australia that's the 'root of all evil' - and why many young Aussies may have the same grim vision of their future

Daily Mail  

A top CEO has claimed the wildly expensive housing market that successive governments have let run out of control is the 'root of all evil' in Australia. Freelancer.com CEO Matt Barrie said the staggering increase in house prices has led to widespread ramifications for Aussies' finances and the way they view the world. Freelancer CEO Matt Barrie has taken aim …

Home insurance costs spike, with parts of Australia at risk of becoming uninsurable
10 months, 3 weeks ago

Home insurance costs spike, with parts of Australia at risk of becoming uninsurable

ABC  

In California and Florida, getting home insurance is becoming an almost impossible task. "We've seen in other markets around the world like California and Florida that have almost very similar profiles to Australia in terms of peril risks like flood and bushfires, as well as cyclones, a growing population has been left vulnerable and exposed," says Insurance Council of Australia …

Why Australia's housing crisis is expected to get even worse - and correcting it could take years
11 months ago

Why Australia's housing crisis is expected to get even worse - and correcting it could take years

Daily Mail  

Australia's housing crisis will get worse before it gets better and the Albanese government is under growing pressure to do more to fix it in next month's budget, a new report says. A backlog of half-built home and stalls on new projects are projected to worsen Australia's housing crisis, experts say The economist wasn't confident the government's goal of building …

Has the great Australian dream of affordable home ownership turned to a nightmare?
11 months, 2 weeks ago

Has the great Australian dream of affordable home ownership turned to a nightmare?

ABC  

Almost everyone recognises the problem. A recent study by the US Federal Reserve Bank of Dallas found that while higher rates since 2021 had made life tougher for home buyers, affordability would have been even worse if rates hadn't risen because housing prices would have risen more. Since the turn of the century, lower interest rates have allowed home buyers …

RBA Financial Stability Review says Australia's banks safe even as up to 85,000 borrowers risk running out of cash
1 year ago

RBA Financial Stability Review says Australia's banks safe even as up to 85,000 borrowers risk running out of cash

ABC  

In short: Around 5 per cent of mortgage borrowers currently spend more than they earn on essentials and their mortgage, and more than 2 per cent could run out of savings by the end of next year. Around 5 per cent of mortgage borrowers currently spend more than they earn on essentials and their mortgage, and more than 2 per …

The worrying graph that shows Australia is going the wrong way in building the 1.2million new homes it needs to solve the housing crisis
1 year ago

The worrying graph that shows Australia is going the wrong way in building the 1.2million new homes it needs to solve the housing crisis

Daily Mail  

A plunge in home approvals has cast severe doubt over the federal government's ambitious plan to build 1.2million homes in five years. Australia's new house approvals are slumping casting severe doubt over the federal government's promise to build 1.2milion homes in five years To meet the Albanese government's targets, 20,000 homes will need to be built every month from July …

Alan Kohler exposes Australia's 'worst financial mistake' - and boomers are the ones benefiting
1 year, 1 month ago

Alan Kohler exposes Australia's 'worst financial mistake' - and boomers are the ones benefiting

Daily Mail  

This video is no longer available This video is no longer available The ABC's finance expert Alan Kohler has described the housing affordability crisis as Australia's worst ever financial mistake. Adelaide, he pointed out, is now Australia's second least affordable capital city when the state's average, full-time salary is compared to the city's median property price. In January, the median …

Reserve Bank blames record-high immigration for unaffordable housing - and why young people are forced to live in a big city where rents are surging
1 year, 1 month ago

Reserve Bank blames record-high immigration for unaffordable housing - and why young people are forced to live in a big city where rents are surging

Daily Mail  

The Reserve Bank has blamed record-high immigration for unaffordable housing as the growth in the value of new mortgages vastly outpaces pay rises. Capital city house prices reached new peaks in 2023, even though the RBA raised interest rates in November for the 13th time in 18 months, taking it to a 12-year high of 4.35 per cent. The Reserve …

Property values bounced back across Australia in 2023, but there are signs of slowing
1 year, 2 months ago

Property values bounced back across Australia in 2023, but there are signs of slowing

ABC  

Australian house and apartment values bounced back in 2023, increasing by 8.1 per cent nationally over 2023, according to new data. Key points: New data shows dwelling values rose nationally last year in comparison to 2022 Sydney remains the most expensive city to buy a property across the country Homes in capital cities increased significantly more than in regional areas …

A rising number of households on the cusp of financial stress, but RBA says banking system isn't at risk
1 year, 5 months ago

A rising number of households on the cusp of financial stress, but RBA says banking system isn't at risk

ABC  

Australian homes and businesses are vulnerable to financial stability risks as rising inflation and interest rates continue to pressure the global economy. Key points: Australia's financial system is well-placed to deal with global economic shocks The share of households falling behind on their mortgage payments has picked up a little Despite rising rates, the vast majority of households are servicing …

Australia's housing divide masks real interest rates pain
1 year, 6 months ago

Australia's housing divide masks real interest rates pain

ABC  

If it feels like we're in uncharted territory when it comes to keeping a roof over your head, you're right. So by splitting that line out into the different groups of people it represents, you can see that it's the increase in mortgage costs that has driven housing costs to record highs. If you only look at the typical housing …

Proptrack Housing Affordability Index: Australian cities which are least affordable to buy a house
1 year, 6 months ago

Proptrack Housing Affordability Index: Australian cities which are least affordable to buy a house

Daily Mail  

Housing affordability is at its worst level in three decades, with the average Australian household able to afford just 13 per cent of the market. The report found households earning the median income of about $105,000 can afford 13 per cent of all homes sold across the country in the last year - the lowest level since records began in …

Young renters under most strain, but full mortgage pain yet to be felt, warns CBA boss
1 year, 8 months ago

Young renters under most strain, but full mortgage pain yet to be felt, warns CBA boss

ABC  

Renters are facing more financial pressure than households with a mortgage at the moment, Commonwealth Bank chief executive Matt Comyn says. Key points: A little more than 60 per cent of the RBA's rate increases have been felt by households so far Renters are facing more financial pressure than households with mortgages There has been a small increase in customers …

First-home buyers could be spending 40 per cent of their incomes on mortgages if interest rates rise twice more
1 year, 8 months ago

First-home buyers could be spending 40 per cent of their incomes on mortgages if interest rates rise twice more

ABC  

New information from the Australian National University shows that first-home buyers could end up putting 40 per cent of their incomes towards mortgage repayments if interest rates rise twice more this year. Professor Phillips said if that happened, far more first-home buyers and those on lower incomes could be placed under mortgage stress. Professor Phillips said his projections showed, for …

Peter Costello issues a wake-up call to young Australians complaining about house prices
1 year, 9 months ago

Peter Costello issues a wake-up call to young Australians complaining about house prices

Daily Mail  

Nine chairman and former treasurer Peter Costello has claimed young Australians are prioritising overseas holidays over saving for a house deposit. Peter Costello, who was treasurer under Liberal PM John Howard, claimed young people would rather spend money on travelling than saving for a house How long it takes to save for a mortgage deposit SYDNEY: 14.3 years in a …

The Mortgage Trap: Help us investigate lending practices in Australia
1 year, 10 months ago

The Mortgage Trap: Help us investigate lending practices in Australia

ABC  

During the pandemic, as house prices surged, many Australians took out very large home loans while interest rates were at historic lows. We want to know whether improper lending practices have contributed to the current financial stress that borrowers are experiencing. We want to examine whether existing policies and regulations provide adequate protection for consumers, or whether they need to …

More Australians forced out of homes as rental housing affordability crisis rages on, Anglicare report shows
1 year, 10 months ago

More Australians forced out of homes as rental housing affordability crisis rages on, Anglicare report shows

ABC  

At the age of 58, Dawn Dowling never thought she'd be stuck packing her belongings into storage and moving in with a friend. Key points: Anglicare's annual rental affordability snapshot was published on Thursday It examined how many properties were affordable for 14 different types of households There are calls for the government to use legislation to ease the crisis …

IMF warns Australian housing market at high risk of mortgage defaults ahead of global economic downturn
1 year, 11 months ago

IMF warns Australian housing market at high risk of mortgage defaults ahead of global economic downturn

ABC  

The level of risk in Australia's housing market is the second-highest in the developed world, the International Monetary Fund has warned. Key points: The IMF has downgraded its global economic growth outlook to 2.8 per cent this year, stoking fears of an economic downturn It says Australia's housing market has one of the highest risks of mortgage repayment defaults in …

Britain’s property market faces a reckoning – the house price plunge is only beginning
1 year, 11 months ago

Britain’s property market faces a reckoning – the house price plunge is only beginning

The Telegraph  

Invisible threat This presents a looming potential threat for the mortgage market. This is likely to mean more stringent “affordability tests” for borrowers, smaller loans in proportion to income, and higher mortgage rates on loans for buyers with smaller deposits. The British housing market is much more exposed to higher mortgage rates than other European markets. This is because debt-to-income …

Million households 'vulnerable' to rising interest rates, and their cuts could cause recession
2 years, 1 month ago

Million households 'vulnerable' to rising interest rates, and their cuts could cause recession

ABC  

Recent home buyer Lorna Zelenak is about to head overseas for a short trip, but she wouldn't be making the same plans today. Key points: AMP chief economist Shane Oliver estimates 1 million households will have to cut spending significantly Stress about the cost of living is at a 4.5-year high, according to NAB Some forecasters now expect the RBA …

Has Australia's housing boom hit the end of the road and could it take the economy down with it?
2 years, 2 months ago

Has Australia's housing boom hit the end of the road and could it take the economy down with it?

ABC  

While Argentina may have dispatched Australia to go on and win football's World Cup, there is one kicking contest where we are undisputed world leaders – that's economic can kicking. Many fixed mortgage rates were below 2 per cent, some for terms as long as four years, and the Reserve Bank governor had said repeatedly that rates were unlikely to …

What Australia's housing market has been doing over the past year
2 years, 2 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 …

New homebuyers enticed into market now face perfect financial storm
2 years, 7 months ago

New homebuyers enticed into market now face perfect financial storm

ABC  

Farheen Khan and her husband Faizan Afzal are about to achieve the great Australian dream — buying a home where their children can grow up, with nearby parks and a good school. Key points: Big government incentives in 2020 lured first homebuyers into the market But those same incentives also helped drive up housing costs Now rising interest rates are …

How does corporate Australia expect households to cope with cost of living — and why we should pay attention
2 years, 7 months ago

How does corporate Australia expect households to cope with cost of living — and why we should pay attention

ABC  

Quietly, and without too much fanfare, the Australian share market has pulled itself out of a technical correction. Some companies have already reported and from today we'll get profit updates and forward guidance from the Commonwealth Bank, Macquarie Group and Telstra — some of the country's biggest employers. Yesterday the National Australia Bank revealed the outlook for its credit quality …

Why Australian banks are slashing fixed-rate home loans despite successive interest rate rises
2 years, 7 months ago

Why Australian banks are slashing fixed-rate home loans despite successive interest rate rises

ABC  

It may have gone largely unnoticed among the screeching sirens and the roar of emergency vehicles — but interest rates actually fell last week. In the rush to deliver the bad news on a hugely telegraphed double hike in the official cash rate — which the big four banks passed on in full on their variable rates — most news …

The housing market seems out of control. But there are lots of things we could do
2 years, 7 months ago

The housing market seems out of control. But there are lots of things we could do

ABC  

I am dumber than our house. If you own a house, higher property prices may make you feel richer even though it's difficult to "realise" that profit. Even though there are thousands of housing markets across Australia — and prices can swing markedly even within small suburbs — most have risen at a consistent rate in recent decades. With two-thirds …

Interest rate rises will see property prices fall further as maximum home loan sizes shrink
2 years, 7 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 …

RBA says borrowers can handle interest rate rises, but experts warn mortgage repayments will surge
2 years, 8 months ago

RBA says borrowers can handle interest rate rises, but experts warn mortgage repayments will surge

ABC  

The Reserve Bank's deputy governor is confident that most mortgage borrowers can cope with rapidly rising interest rates, even as analysts suggest many households could soon face $1,000 a month or more in extra repayments. Key points: Almost a third of borrowers could face a 40 per cent increase in monthly mortgage repayments next year Monthly repayments could increase by …

Interest rates are rising: Is the RBA at fault for allowing Australians to take on too much debt?
2 years, 8 months ago

Interest rates are rising: Is the RBA at fault for allowing Australians to take on too much debt?

ABC  

Can we blame Australians for being a little confused about the Reserve Bank's messaging on interest rates? Towards the end of 2020 and for nearly all of last year, Reserve Bank Governor Philip Lowe said interest rates would not likely rise until 2024. In November and December 2020, Dr Lowe said in the bank's monetary policy decision statement that the …

Largest house price correction since 1980 to hit, Sydney and Melbourne set to be hit the hardest
2 years, 9 months ago

Largest house price correction since 1980 to hit, Sydney and Melbourne set to be hit the hardest

Daily Mail  

Australian house prices could plunge by 20 per cent with Sydney and Melbourne tipped to suffer the biggest slide in four decades - as interest rates soared to curb stubborn inflation. Scroll down for video Australian house prices could plunge by 20 per cent with Sydney and Melbourne set to suffer biggest slide in four decades - as interest rates …

Declining Sydney property prices a forecast for the rest of Australia, experts say
2 years, 9 months ago

Declining Sydney property prices a forecast for the rest of Australia, experts say

ABC  

As interest rates rise, Sydney house prices are dropping and experts say it is a "bellwether" for what is about to happen across the rest of the country. Key points: Interest rates are driving the decline in value of Sydney properties The Reserve Bank of Australia increased the cash rate to 0.85 per cent. "If we see interest rates rise …

HomeBuilder and first home buyer grants made housing less affordable says Reserve Bank
2 years, 10 months ago

HomeBuilder and first home buyer grants made housing less affordable says Reserve Bank

ABC  

Government subsidies such as first home buyer grants and HomeBuilder have boosted demand for homes and helped push up house prices, with "pervasive" impacts on housing outcomes for some Australians, according to the Reserve Bank. She noted that solid rates of home-building during the past two years had been due to very low interest rates as well as government grants, …

Australia PM defends housing pitch as election looms
2 years, 10 months ago

Australia PM defends housing pitch as election looms

Al Jazeera  

Government plans would allow first home buyers to dip into their retirement savings for a deposit. Australian Prime Minister Scott Morrison has defended his election pitch to allow first-time buyers to use part of their retirement savings to buy homes in a bid to lure younger voters as the campaign entered its final week. Spending more money on a deposit …

A decade of savings isn’t enough for most first home buyers, as deposits soar out of reach
2 years, 10 months ago

A decade of savings isn’t enough for most first home buyers, as deposits soar out of reach

ABC  

It takes a first home buyer almost 11.5 years to save a 20 per cent deposit for an average priced home. Ms Owen says assuming a 15 per cent property price decline and a mortgage rate of almost 5 per cent "you save on the deposit, but you spend more over the life of the loan". "Assuming a household income …

The postcodes where house prices have surged 55 per cent in a year despite interest rate rise fears
2 years, 10 months ago

The postcodes where house prices have surged 55 per cent in a year despite interest rate rise fears

Daily Mail  

Houses prices in some parts of Australia are continuing to surge by an annual pace of 55 per cent despite talk of the first interest rate rise in more than a decade. North Arm Cove, near Port Stephens and Hawks Nest north of Sydney, saw median house prices in the year to April surge by 54.9 per cent to $709,086, …

Do politicians even want to revive the Australian dream of home ownership?
2 years, 10 months ago

Do politicians even want to revive the Australian dream of home ownership?

ABC  

Who should we believe? "The 1940s to 1970s era generated the 'Australian dream', with home ownership levels reaching in excess of 70 per cent," it said. Well, the researchers said the declining rate of home ownership among millennials and younger age groups would guarantee that Australia's historically-high rate of home ownership would drop away. It said policymakers had put Australia …

Labor home buyer revolution as Anthony Albanese plans to spend millions to open up property market
2 years, 10 months ago

Labor home buyer revolution as Anthony Albanese plans to spend millions to open up property market

Daily Mail  

Anthony Albanese is set to unveil a revolutionary plan where a Labor government will pay up to 40 per cent of the sale price of homes to make it easier for buyers to get on the property ladder. The value of eligible homes would differ by region shown on the table, with the government proposing to assistance in varying degrees …

Australia house prices: Warning property values could plunge by double digit rate
2 years, 10 months ago

Australia house prices: Warning property values could plunge by double digit rate

Daily Mail  

Australian homeowners are being warned to brace for a 15 per cent plunge in house prices with the big banks now all expecting a rate rise next week and more to follow. Australian borrowers are being warned to brace for a 15 per cent plunge in house prices with the big banks now all expecting a rate rise next week …

In property-mad Australia, borrowers brace for pricier mortgages
2 years, 11 months ago

In property-mad Australia, borrowers brace for pricier mortgages

Al Jazeera  

The Reserve Bank of Australia is expected to announce multiple increases in its benchmark interest rate this year. “When we purchased, the interest rate was at the minimum, so we thought it would be a good time to purchase,” Zafar, 39, told Al Jazeera, recalling that a month before buying the property, Australia’s central bank had dropped its benchmark interest …

Expanding the Home Guarantee Scheme comes with pros and cons for first-time property buyers
2 years, 11 months ago

Expanding the Home Guarantee Scheme comes with pros and cons for first-time property buyers

ABC  

The government is planning to expand the Home Guarantee Scheme, which allows first home buyers to purchase with a deposit of as little as 5 per cent. Key points: The price cap on Home Guarantee Scheme loans will be lifted by up to $150,000 in some areas and $100,000 for most capital cities Analysts say it will give first home …

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