The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
OtherAna NarvaezWed 10 Jul 19

Regulators Positive About Housing Market Recovery

TUD+ MEMBER CONTENT
f122a26c-55b9-482c-8a7e-f5f23db7e527
SHARE
87
print
Print

The coordinating body for Australia’s financial regulators has signalled confidence that the housing market has bottomed out, observing a “levelling out” of house prices and lending conditions in its latest minutes.

The Council of Financial Regulators, chaired by Reserve Bank governor Philip Lowe, said that strong auction clearance rates and improving house prices is evidence of stabilisation in the Sydney and Melbourne housing markets.

The council said that the housing downturn had been “sizeable” and market conditions in most other capital cities remain soft.

The council, which meets quarterly, is the coordinating body for the Reserve Bank, APRA, ASIC and the Treasury.

Its members also discussed weakening credit growth and declines in lending affected by declining collateral values and house price falls.

“Housing credit growth has stabilised at a relatively low level, with lending to investors remaining weak, particularly from the major banks.

“Housing loan arrears have continued to edge higher, but with significant variation between regions.”

Housing-related sentiment has received a boost from back-to-back rate cuts, with the Westpac-Melbourne Institute’s “time to buy a dwelling” index posting its first above-trend reading in four and a half years.

“Just over 40 per cent of consumers expect [house] prices to be higher in a year’s time — that compares to less than 20 per cent back in March,” Westpac senior economist Matthew Hassan said.

The post-election kick in business confidence appears to have been short-lived, according to NAB’s monthly business survey — reflecting the council’s concern for weak business credit growth.

“Business confidence appears to have unwound its spike in May, which we think was driven by a short-term election bounce and increased optimism around a renewed interest rate easing cycle by the RBA,” NAB chief economist Alan Oster said.

Sentiment has bounced in residential and commercial sectors

▲ Source: ANZ-Property Council.


The pick up in auction results, along with cash and tax rate cuts and the loosening of home lending restrictions has boosted confidence, but economists largely agree that a return to boom-time conditions is not going to happen.

ANZ economist David Plank said that a shift back to dramatic increases in house prices is unlikely in the prevailing environment of more stringent credit policies. AMP’s Shane Oliver said that while the cut may help the market find its bottom, it’s “unlikely to set off another boom”.

Council members said that ASIC’s upcoming public consultation on responsible lending was more about clarifying guidance on existing requirements than changing them.

“The responsible provision of credit is a cornerstone of consumer protection and is important to the Australian economy.

“Risks to lenders from housing price falls have to date been limited by the strength of the labour market, low interest rates and the improvement in lending standards in recent years.”

ResidentialAustraliaFinancePolicyReal EstateSector
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Darwin has sat dormant for a decade but the resource rich territory is “on the threshold” of a boom for resources and new cities. Weddel and Palmerston
Exclusive

NT Eyes Looming Boom as Planning Commissioner Bows Out

Renee McKeown
5 Min
Exclusive

Gold Coast’s Greatest Moments Yet to Come: Evan Raptis

Phil Bartsch
7 Min
MODEL founder Rory Hunter HERO
Exclusive

‘It’s Massive’: On Mission to Prove BtR Green Equals Gold

Leon Della Bosca
8 Min
Potts Point Coliving EDM
Exclusive

Co-Living Shrugs Off Stigma as Overseas Money Moves In

Clare Burnett
6 Min
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
7 Min
View All >
Darwin has sat dormant for a decade but the resource rich territory is “on the threshold” of a boom for resources and new cities. Weddel and Palmerston
Exclusive

NT Eyes Looming Boom as Planning Commissioner Bows Out

Renee McKeown
Paradiso Place Surfers Paradise hero
Residential

Surfers Paradise $1bn Triple-Tower Project Feasibility Juggle

Phil Bartsch
East Walker St Aland EDM
Residential

Aland Scoops Up $240m North Sydney ‘Dream’ Site

Clare Burnett
A trio of development heavy-hitters this year won approval for two towers up to 30 storeys on the site…
LATEST
Darwin has sat dormant for a decade but the resource rich territory is “on the threshold” of a boom for resources and new cities. Weddel and Palmerston
Exclusive

NT Eyes Looming Boom as Planning Commissioner Bows Out

Renee McKeown
5 Min
Paradiso Place Surfers Paradise hero
Residential

Surfers Paradise $1bn Triple-Tower Project Feasibility Juggle

Phil Bartsch
4 Min
East Walker St Aland EDM
Residential

Aland Scoops Up $240m North Sydney ‘Dream’ Site

Clare Burnett
3 Min
Kemps Creek Penrith EDM
Industrial

Frasers $281m Penrith Warehouse Precinct Greenlit

Clare Burnett
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/regulators-positive-about-housing-market-recovery-