Australia’s housing market is responding to a number of factors creating further growth in home values. Home loan interest rates have never been lower and this has encouraged borrowers with housing debt now at record-high levels. While the housing stock availability is similar to last year, new listing have fallen significantly in Sydney and Melbourne feeding panic buying in these cities.
Tightened regulations have done little to diminish domestic demand in Sydney and Melbourne however overseas borrowers are having serious difficulty obtaining finance and this may threaten a number of off-the-plan settlements and could lead to a fire sale situation for apartments coming to completion.
The recent auction clearance rate was 81.0 per cent over the most recent week according to CoreLogic, is a fall from last week’s recent record for the year 84.3 per cent, North Sydney and Hornsby continue to be auction hot spots with 127 auctions held with a clearance rate of 87.6 per cent.