CBA Tips Housing Growth
With as much as 16 per cent growth predicted.
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The Commonwealth Bank of Australia is forecasting a surge in house prices over the next two years.
The latest figures to come from the bank indicate as much as 16 per cent for housing prices alongside a unit price growth of nine per cent.
This comes as lending rates have lifted sharply, signalling a housing market is on the “cusp of a boom”.
“The increase in new lending is now feeding into higher prices for bricks and mortar,” says CBA economist Gareth Aird.
In the Bank’s most recent economics issues report, released today, the CBA reported that the predicted boom was to come off the back of record low interest rates and a labour market that is set to rebound sharply.
This, combined with rental yields that arrived well above the borrowing rates means that property markets will, in theory, rise.
“The CBA is reporting positive momentum is building within the property market and “as the market firms, would-be buyers are more confident to purchase and this brings other buyers into the market,” adds Aird.
And although the news is positive for homeowners, it is less so for unit-owners, with a 7 per cent growth disparity between houses and apartments.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Scheduled auctions fall to winter levels as vendors hold back on going to market
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Grand final fever and the long weekend have dampened scheduled auction activity this weekend, CoreLogic reports.
The number of homes scheduled for auction this weekend is set to halve, with 1,324 properties listed, marking the quietest week since mid June. Melbourne will experience the quietest week since Easter, CoreLogic data shows, with 223 homes prepared to go under the hammer. In Sydney, 805 properties are expected to go to market, the lowest number in seven weeks.
With long weekends in Queensland and South Australia, numbers are also down in Brisbane (111) and Adelaide (86), less than half the properties available for auction the previous week. It’s a less dramatic drop in Canberra, where 83 homes are scheduled for auction, down -22.4 percent on the previous week.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
