Government minister admits first home buyer policy would push up house prices, PM says other policies would balance it out
2 years, 7 months ago

Government minister admits first home buyer policy would push up house prices, PM says other policies would balance it out

ABC  

Minister for Superannuation Jane Hume has conceded the Coalition's recently announced first home buyer policy would increase house prices "temporarily". Key points: Some economists say it would only push up house prices and would not address affordability Superannuation Minister Jane Hume says a number of other factors influence house prices Scott Morrison says other government policies will minimise any potential impact on house prices The campaign promise to allow first home buyers to dip into their super to help pay for a home deposit has been criticised by economists and the opposition as a policy that would only drive up house prices further. "We know that people will probably bring forward some of their decisions to buy a house earlier and for that reason it will probably push prices temporarily," Senator Hume said. "The tension between superannuation and housing need not be there, as the government's own Retirement Income Review shows that home ownership is a fundamental pillar for a successful retirement," Mr Groves said.

Policy Housing Balance Coalition Prices Affordability House Scheme Policies House Prices Morrison Super Hume Coates Housing Affordability Superannuation Push Scott Morrison Mr Coates  scheme  policy  policies  super  affordability  retirement  push  buyer  housing  balance  house  admits  superannuation  prices  minister

History of this topic

House prices rise just 0.1 per cent in weakest result since January 2023, CoreLogic data shows
3 weeks, 1 day 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 …

Sydney and Melbourne house prices predicted to fall next year as Perth leads nation in value growth
4 weeks, 1 day ago

Sydney and Melbourne house prices predicted to fall next year as Perth leads nation in value growth

ABC  

House prices in Sydney and Melbourne are set to decline further in 2025, while Perth is likely to experience the strongest growth among Australia's capital cities, according to SQM Research's latest Boom and Bust Report. City 2025 housing price forecast Perth +14% to +19% Brisbane +9% to +14% Darwin +5% to +8% Melbourne -5% to -1% Sydney -5% to -1% …

Has the great Australian dream of affordable home ownership turned to a nightmare?
8 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 …

Priced out: young people needing housing face a closed door
1 year, 10 months ago

Priced out: young people needing housing face a closed door

Dutch News  

The papers are full of news about house price movements, new political drives and house building plans. Delft university housing systems professor Peter Boelhouwer calls it a ‘wicked’ market, where first time buyers and those on mid-level incomes get stuck in ‘a big poverty gap/trap.’ By 2022, he says, a two-income couple on an average income needed savings of €280,000 …

Priced out: young people needing housing face a closed door
1 year, 10 months ago

Priced out: young people needing housing face a closed door

Dutch News  

The papers are full of news about house price movements, new political drives and house building plans. Delft university housing systems professor Peter Boelhouwer calls it a ‘wicked’ market, where first time buyers and those on mid-level incomes get stuck in ‘a big poverty gap/trap.’ By 2022, he says, a two-income couple on an average income needed savings of €280,000 …

Australia PM defends housing pitch as election looms
2 years, 7 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 …

Expanding the Home Guarantee Scheme comes with pros and cons for first-time property buyers
2 years, 8 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 …

Will the first home buyer deposit scheme drive up house prices? What if you cannot find an affordable home?
2 years, 8 months ago

Will the first home buyer deposit scheme drive up house prices? What if you cannot find an affordable home?

ABC  

Finding ways to help more people buy their own home has been a political challenge for decades. The policy — which allows some first home buyers to purchase a property with as little as a five per cent deposit — will more than triple in size. The scheme has proved popular since its creation in 2019, and housing industry groups …

Inflation is not 'out of control', but interest rates may have to rise this year
2 years, 10 months ago

Inflation is not 'out of control', but interest rates may have to rise this year

ABC  

Australian consumers saw prices rise by 3.5 per cent last year. Inflation running at 3.5 per cent Most of the price increases facing consumers in Australia last year were driven by pandemic-related economic disruptions. Gareth Aird, a Commonwealth Bank economist, says Australia's labour market will keep tightening this year, meaning even more people will find jobs and the unemployment rate …

Reserve Bank of Australia assistant governor Luci Ellis blames government spending for house prices
3 years, 1 month ago

Reserve Bank of Australia assistant governor Luci Ellis blames government spending for house prices

Daily Mail  

Taxpayer-funded policies have been blamed for the surge in Australian property prices to well beyond what an average income earner can afford. Luci Ellis, an assistant governor on economic policy with the Reserve Bank of Australia, suggested pandemic stimulus measures were responsible, with house values in some coastal areas surging by more than 30 per cent in just a year. …

First home buyers hit with 'emotional rollercoaster' trying to break into sky-high property market
3 years, 2 months ago

First home buyers hit with 'emotional rollercoaster' trying to break into sky-high property market

ABC  

For over a year, Brisbane couple Eve Anderson and Jordan Roberts have spent every weekend at back-to-back open homes. Property prices outstripping wages The couple are among thousands of first home buyers competing with cashed-up investors and owner-occupiers in a housing market that's running red hot across the country. "You need a return on investment because it's not your forever …

Home loan crackdown appears imminent as Treasurer, regulators discuss house price surge
3 years, 2 months ago

Home loan crackdown appears imminent as Treasurer, regulators discuss house price surge

ABC  

The Treasurer has given the strongest indication yet that a home loan crackdown is looming, confirming that surging house prices were a key topic of discussion at a regulators' meeting on Friday. Key points: Treasurer Josh Frydenberg says the Council of Financial Regulators discussed the recent surge in home prices last week Analysts expect the council to announce new home …

COVID provided a real-life experiment on house price theory and what makes owning a home unaffordable
3 years, 2 months ago

COVID provided a real-life experiment on house price theory and what makes owning a home unaffordable

ABC  

In March last year, Australia's international border was slammed shut. "I said at the start of COVID, we're about to find out what matters more for house prices: interest rates, or underlying demand or supply," he said. "The Reserve Bank's been very clear, it's not going to raise interest rates to reduce house prices," he said. "The issue is not …

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 …

House prices rising at fastest pace in 32 years as listings can't keep up with demand: CoreLogic
3 years, 8 months ago

House prices rising at fastest pace in 32 years as listings can't keep up with demand: CoreLogic

ABC  

Australian house prices are rising at the fastest pace in 32 years, as the Sydney and Melbourne property markets stage a full recovery from the short-lived COVID downturn. Key points: Home values in Sydney, Melbourne, Hobart, Canberra and Brisbane are at record highs Capital city price rises outpaced regional markets for the first time in a year Some economists expect …

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 …

Australian property bubble hasn't yet burst, but can house prices keep rising amid the pandemic?
4 years, 1 month ago

Australian property bubble hasn't yet burst, but can house prices keep rising amid the pandemic?

ABC  

After years of dire predictions that Australia's property bubble could burst, national house prices continue to withstand the otherwise devastating impact of the coronavirus pandemic, and once again the doomsayers have been proven wrong. It's a question I asked AMP Capital chief economist Shane Oliver, who in late March at the onset of the pandemic in Australia, had warned that …

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