CoreLogic's head of research says a key topic at the Reserve Bank meeting today will be around housing market conditions and the ongoing rebound in the rate of capital gains... FHB package for Victorians a big step forward, says HIA...
Rates to stay low and housing to stay strong, says Corelogic's Lawless
Ahead of the Reserve Bank's board meeting today, CoreLogic head of research Tim Lawless says one of the key topics under discussion will be around housing market conditions and the ongoing rebound in the rate of capital gains over the second half of 2016 and first two months of 2017.
"The CoreLogic monthly hedonic index shows capital city dwelling values have increased by 7.8% since the May ‘16 rate cut. The renewed exuberance in the housing market over the past eight months is due to more than just low mortgage rates. The reacceleration in capital gains also coincides with a substantial rebound in investment purchasing activity which has been a key driver of market demand and upwards price pressures," Lawless said.
"The predicament for the RBA is clear, they are unwilling to drop rates because this would likely add further fuel to the housing market; they don’t want to push rates higher as this will stifle consumption and investment more broadly as well as potentially place some upwards pressure on the Australian dollar. While interest rates remain at their current low level, and in the absence of additional macro prudential measures, we should expect housing demand from investors and owner occupiers to remain strong, particularly in those cities where economic conditions remain strong and migration rates remain high."
FHB package for Victorians a big step forward, says HIA
The Housing Industry Association (HIA) welcomes today’s announcement by the Andrews Government of the Homes for Victorians policy package, which will improve first home buyer affordability in Victoria.
“Housing in Victoria has been stronger than most states over the last few years, but the HIA has consistently highlighted the need for a comprehensive approach to addressing the state’s housing affordability challenge,” said HIA Victoria’s acting executive director, Keith Banks.
Banks said the HIA commends the Victorian Government for a policy suite that address a range of areas.
“Today’s announcement that stamp duty will be abolished for most first home buyers in Victoria is great news for housing affordability,” said Mr Banks. “Stamp duty is to be removed for first home buyers purchasing homes below $600,000. Purchasers of properties between $600,000 and $750,000 will receive a concession to their stamp duty bill,” Banks said.
“This policy will provide thousands of Victorians with the ability to enter the market faster than previously possible and will provide a boost to Victoria’s residential housing industry.”
Ahead of the Reserve Bank's board meeting today, CoreLogic head of research Tim Lawless says one of the key topics under discussion will be around housing market conditions and the ongoing rebound in the rate of capital gains over the second half of 2016 and first two months of 2017.
"The CoreLogic monthly hedonic index shows capital city dwelling values have increased by 7.8% since the May ‘16 rate cut. The renewed exuberance in the housing market over the past eight months is due to more than just low mortgage rates. The reacceleration in capital gains also coincides with a substantial rebound in investment purchasing activity which has been a key driver of market demand and upwards price pressures," Lawless said.
"The predicament for the RBA is clear, they are unwilling to drop rates because this would likely add further fuel to the housing market; they don’t want to push rates higher as this will stifle consumption and investment more broadly as well as potentially place some upwards pressure on the Australian dollar. While interest rates remain at their current low level, and in the absence of additional macro prudential measures, we should expect housing demand from investors and owner occupiers to remain strong, particularly in those cities where economic conditions remain strong and migration rates remain high."
FHB package for Victorians a big step forward, says HIA
The Housing Industry Association (HIA) welcomes today’s announcement by the Andrews Government of the Homes for Victorians policy package, which will improve first home buyer affordability in Victoria.
“Housing in Victoria has been stronger than most states over the last few years, but the HIA has consistently highlighted the need for a comprehensive approach to addressing the state’s housing affordability challenge,” said HIA Victoria’s acting executive director, Keith Banks.
Banks said the HIA commends the Victorian Government for a policy suite that address a range of areas.
“Today’s announcement that stamp duty will be abolished for most first home buyers in Victoria is great news for housing affordability,” said Mr Banks. “Stamp duty is to be removed for first home buyers purchasing homes below $600,000. Purchasers of properties between $600,000 and $750,000 will receive a concession to their stamp duty bill,” Banks said.
“This policy will provide thousands of Victorians with the ability to enter the market faster than previously possible and will provide a boost to Victoria’s residential housing industry.”
