May 7, 2019
Financial writer and ABC News commentator Alan Kohler says
there’s “a decent chance” that the housing market has bottomed
already. “If not already, then soon,” he says.
Writing in The Australian, Kohler says: “That’s because auction
clearance rates have been rising strongly for a few weeks and
housing finance bounced in February. With affordability having
improved, first-home buyers are back. And supply is
tightening.”
There are strong signs that housing affordability for new mortgage borrowers in Australia, which improved over the year to March, will continue to improve over the next 12 months, according to Moody’s Investor Service.
Another positive sign is that rents are rising in most capital cities - while almost every regional area in NSW, Victoria and Queensland recorded rent rises in the past year, says Domain.
Additionally rental returns are rising across Australia’s major cities, with rising rentals creating improvements in some cities and falling prices helping in others. Rental yields increased in all capital cities bar Brisbane over the past three months, the latest Domain Rental Report shows.
Lenders competing strongly for loan business and housing finance figures rising in February and new home sales showing signs of stabilising are more reasons for investors to feel optimistic.
Auction outcomes are also improving: Half of all homes up for auction across Australia’s capital cities sold during the first quarter of 2019, with the latest CoreLogic Quarterly Auction Market Review showing a clearance rate of 50% across the combined capitals. This is an increase of 6.6 percentage points on the December Quarter results.