The housing market is set to take over from mining as Australia’s primary economic driver. CommSec reports house prices are lifting at the fastest annual rate in more than two and a half years, with prices at the top end of the market now rallying. The new growth is due to the population rising in capital cities … but construction is failing to keep up.
On the other hand stock levels continue to fall. SQM Research says stock for sale levels around the nation have fallen by more than 2 per cent and Sydney is still showing signs of significant declines.
Stock for sale there has fallen by 17 per cent over the past 12 months. SQM Research says it’s becoming more evident that the housing market is beginning to pick up – and it’s likely to continue into Spring. Adelaide, Hobart and Perth also had monthly declines in stock for sale levels of more than four per cent.
However, stock levels in Melbourne and Brisbane are mostly unchanged. Meanwhile, homebuyer sentiment is at record levels in fact the highest they’ve been in six years. Lenders’ mortgage insurance company Genworth conducted an independent survey and found the confidence index has jumped from a record low of 93 in March to 100 at the end of July. It’s mostly due to the fact that borrowers are now more confident about making mortgage repayments They’re also using less of their monthly income to service debt, thanks to falling interest rates.
And finally, many people obtaining loans are using non-major lenders?
More than 25 per cent of home loans that were processed last month were from non-major lenders… according to mortgage broker company AFG. It says this indicates more competition between banks… leading to competitive interest rates, which is obviously good news for borrowers.