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September 2014 Reserve Bank Financial Stability Review

The Reserve Bank released their bi-annual Financial Stability Review (FSR) earlier today.  From a housing market perspective it makes for very interesting reading with the RBA noting that ‘the composition of housing and mortgage markets is becoming unbalanced, with new lending to investors being out of proportion to rental housing’s share of the housing stock.’ [...]

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Inflation adjusted home values are still lower than their previous peak across most cities

According to the RP Data-Rismark Home Value Index, combined capital city home values fell by -0.2% over the second quarter of 2014.  With the Australian Bureau of Statistics (ABS) releasing their Consumer Price Index (CPI) data this week, we can see that in ‘real’ terms home values across the combined capitals fell by -0.7% over [...]

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What can be done about the fading hopes of lower income earner’s owning a home?

Lower income earner’s hopes of owning a home have faded over the past two years due to the high rate of capital gain, so what can be done? In last week’s RP Data Research Blog I highlighted sales by price point across the capital cities.  The data showed a shortening supply of homes selling at [...]

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Fewer homes selling at lower price points as value growth surges

There’s no doubt about it, housing is becoming more expensive as home values rise.  The escalation in the cost of housing is forcing households to spend more to purchase a home; subsequently the deposit is also higher forcing many first home buyers to wait until later in life to purchase a home or consider a [...]

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Forget affordability measures and ask yourself some tough questions

There are many measures of affordability in the marketplace, sadly I believe that many of these measures fail to accurately depict the affordability or otherwise of housing in Australia.  The main reason being that housing affordability is an extremely complex issue and many factors drive the affordability of housing.  In this blog post I am [...]

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Has the housing market moved through the peak of the growth cycle?

The RP-Data Rismark Home Value Index reported its first month on month fall in May after capital city dwelling values consistently rose over the previous eleven months. The extent to which the May decline was a seasonal factor has been a key topic across the media; generally the month of May is a seasonally weak [...]

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A case study of Sydney housing over time

Over the three months to April 1990, the median selling price of a dwelling (a combination of houses and units) across Sydney was recorded at $152,500.  As at April 2014, the median selling price of a dwelling was $680,000 which represents a 347% increase in selling price over the 24 year period.  Of course a [...]

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Our capital city population is booming but the supply side not so much

The Australian Bureau of Statistics has recently released demographic data at a capital city level to June 2013.  We have previously covered the population data on this blog however, when the data is paired with dwelling approvals data over the same period there are some very interesting findings. Over the 12 months to June 2013, [...]

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Are first home buyers willing to sacrifice lifestyle for housing?

Last year (according to the RP Data-Rismark Home Value Index), capital city home values rose by 9.8%, creating further affordability pressures for those segments of the market who are most price sensitive; the younger aged cohorts and first time buyers.  Our daily index data shows that home values have continued their strong pace of growth [...]

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Inflation is surprisingly strong and home values (adjusted for inflation) are still below their previous peak

The Australian Bureau of Statistics (ABS) released the Consumer Price Index results for the December 2013 quarter earlier today.  The December results provide a timely summary of consumer price rises up to the end of last year. Headline inflation was recorded at 0.8% over the final quarter of the year and was 2.7% over the [...]

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