Low interest rates could push up property prices by as much as 30 per cent.

Home buying spending intentions are continuing to rise in 2021, following a sharp increase at the end of 2020, according to the latest Household Spending Intentions Series by CommBank. According to the new research, both home loan applications and Google searches related to home buying had increased in January 2021, relative to the same period a year earlier. The Household Spending Intentions Series also noted that the Home Buying market will be a “key source of support for the Australian economy in 2021 - driven largely by the very low level of interest rates”. Speaking of low rates, RateCity research found that the average variable owner-occupier home loan rate (paying principal and interest) fell by 0.47 per cent from February 2020 to February 2021. As of publishing this article, the current lowest interest rate on the market now sits at 1.69 per cent from Greater Bank. Get details at: x Home buying intentions increase as property prices... Home buying spending intentions are continuing to rise in 2021, according to the latest Household Spending Intentions Series by CommBank. Meanwhile, housing prices across Australia have been tipped to... www.ratecity.com.au

Almost 130,000 new detached homes are set to commence construction in 2021, surpassing a previous record of 120,000 set in 2018, the latest economic and industry outlook by the Housing Industry Association (HIA) has revealed. According to HIA’s chief economist, Tim Reardon, every location in Australia is expected to witness a rise in new builds thanks to HomeBuilder. “HomeBuilder has delivered. All leading indicators show a record volume of detached homes about to commence construction, and this is occurring in almost every location across Australia. Across most states and territories, regional locations are showing a larger increase in activity compared with capital cities, as more people opt out of inner-city living. “The strong conditions for detached homes are in stark contrast to the outlook for multi-units, which will continue to cool.” Continue reading at: x Detached home construction to reach record high in... A record number of detached homes are about to commence construction, according to a new report, with a demographic shift said to be the main growth driver. www.smartpropertyinvestment.com.au

December’s housing finance data from the Australian Bureau of Statistics (ABS) revealed that mortgage demand has rocketed to unprecedented levels after experiencing 31% growth year-on-year: As we know, mortgage growth is the best single short-term indicator for property prices, typically leading prices by about six months: Source: x Australia's mortgage boom is unstoppable! - MacroB... December’s housing finance data from the Australian Bureau of Statistics (ABS) revealed that mortgage demand has rocketed to unprecedented levels after experiencing 31% growth year-on-year: www.macrobusiness.com.au

The housing market has been touted for its resilience, the minutes from the RBA’s February board meeting revealed, with the bank acknowledging the market’s key role in the country’s economic recovery. Noting that the market’s resilience has been better than expected, the RBA said: “Housing prices had recently been rising across most of Australia following an earlier period where conditions had been quite variable. This had returned the national housing price index to levels reached around four years earlier.” “Members noted that there were few signs of a deterioration in lending standards; however, lending standards would be monitored closely in the period ahead.” The members did, however, concede that loan commitments had continued to pick up over preceding months. “New housing loan commitments for owner-occupiers had increased to be well above the previous high in 2017. Investor housing loan commitments had also increased somewhat, but remained well below earlier peaks.” Continue reading at: x RBA admits low interest rates will boost cost of h... The RBA has confirmed that it is closely monitoring the impact of low interest rates on the level of housing loan commitments and acknowledged the “inherent” risk of soaring asset prices in the ho... www.smartpropertyinvestment.com.au

Is Merriville Rd a nice place to live in?

CoreLogic’s Housing Market Update Report for February includes interesting data on Australia’s rental market, which is rebounding strongly from the soft conditions evident between 2018 and 2020. Rental markets are tightening across most areas of Australia – the key exceptions being the major cities of Sydney and Melbourne, which are being hit hardest from the collapse in immigration: Regional areas are experiencing especially fast rental growth, growing by 6.3% in the year to January versus just 1.2% growth across the combined capital cities (weighed down by Melbourne and Sydney). Get details at: x Rental market red hot outside of Melbourne and Syd... CoreLogic’s Housing Market Update Report for February includes interesting data on Australia’s rental market, which is rebounding strongly from the soft conditions evident between 2018 and... www.macrobusiness.com.au