Will the Government act on housing affordability this May?

FHBA Market Update: 11/04/2017

If you believe all the talk in the media and Mr Morrison’s pre-budget speech, the government will finally act on housing affordability at the May federal budget. However, the government, for now, is keeping close to it’s chest the exact measures they are planning to introduce.

One thing is clear – Treasurer Scott Morrison wants negative gearing to stay, which is frustrating priced out first home buyers.

At this stage there have been no formal announcements by the federal government. Speaking on Monday about the issue broadly, the Treasurer included in his speech hints to supply side factors and helping young people build a deposit. FHBA will continue to push for the need for housing reform and we will let you all know of any official announcements by the government. At this stage, what’s being discussed in the media is all speculation and unfortunately, nothing is yet official.

In this week’s FHBA Market Update we take a look at the latest data showing falling levels of home ownership in Australia (amongst younger generations), the latest RBA announcement on rates, ‘Super Saturday’s’ action results, the latest movement’s in property prices and what first home buyers should be expecting during this period of policy uncertainly and various public holidays.

 


News affecting first home buyers

While housing affordability continues to be debated in the community and in Canberra, the property market continues to do its thing. See what’s going on at the moment:

  • Australian millennials among world’s worst for home ownership – According to a major world survey conducted by HSBC Bank only 28 % of Australia millennials have bought a home compared to a global average of 40 %. FHBA co-founder Daniel Cohen shared with Domain why FHBA believes home ownership is so much harder in Australia – see the survey results + Daniel’s interview in Domain
  • Interest rates on hold, well sort of – Last week the Reserve Bank of Australia (RBA) opted to leave the cash rate on hold at a record low of 1.50%, but many banks have increased interest rates outside of any movement by the RBA – learn what the RBA had to say about housing in FHBA News
  • Easter period is a tricky one – The Easter period is a tricky time for the property market and it’s not just because of Easter – learn why in FHBA News

Capital City Price Movements

The CoreLogic Daily Home Value Index (as at 11/April/2017):

  • Adelaide – 481.55 (Qtr + 2.7% / Yr + 2.8%)
  • Brisbane – 553.86 (Qtr + 1.0% / Yr + 4.7%)
  • Melbourne – 907.06 (Qtr + 4.6% / Yr + 17.9%)
  • Perth – 567.62 (Qtr – 1.8% / Yr – 5.2%)
  • Sydney – 1112.23 (Qtr + 6.3% / Yr + 18.8%)

(Source: CoreLogic)



Preliminary Weekend Auction Clearance Rates (8th – 9th of April, 2017)

Source: CoreLogic


Interest Rates Update – 11/04/2017

Last Tuesday the Reserve Bank of Australia (RBA) met to review the official cash rate. The RBA board opted to leave the official cash rate on hold at a record low 1.50%. The next RBA Board meeting will be held in May.


New Homes of the Week (ed. 49)

Have you ever seen a display home, either in person or in an advertisement and thought something along the lines of ‘why can’t this just be my first home’?

Display homes are built to showcase a range of properties being built by a property builder. Therefore, they are usually built with high quality finishings and are presented very well. Once the builder has sold the properties within the development the display home is associated with it the builder no longer requires the display home……and so, it is sold!

In this week’s edition of FHBA New Homes of the Week (edition 49) we take a closer look at what you need to consider when buying a display home and show you 5 display homes we like right now for first home buyers! See this week’s best first home buyer homes

Display homes – yes you can buy one


Tweet of the Week

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Written By,

First Home Buyers Australia

First Home Buyers Australia
First Home Buyers Australia

Australia’s leading organisation specialising in assisting first home buyers achieve the great Australian dream of property ownership.