Our latest First Home Buyer Report indicates that Government intervention with tax policy changes to cool the residential investor market likely came at the right moment for first home buyers* (FHBs).
Housing construction costs surged 1.3% over Q1 2021, according to CoreLogic’s Cordell Housing Index Price (CHIP).
According to the CoreLogic House Price Index (HPI), which is the most complete and robust measure of property value change in the market, nationwide values increased by a further 3.1% over April.
March was another bumper month for mortgage lending activity, but the tighter loan to value ratio rules from 1st March (and effectively prior to that because of banks’ own actions) have already significantly curtailed the low-deposit investor flows, as would be expected. On top of that, the Government has of...
The CoreLogic Property Market & Economic Report for Q1 2021 reinforced the heated market conditions which led to the Government’s recent housing policy announcement.
Up to Q3 2020 first home buyers (FHBs) had actually had a strong property market share. But the rapid rise in values since then has caused them some ‘fatigue’, in terms of keeping up with deposit requirements – hence their share of purchases has dropped from 25% to 21%.
March was the third month in a row that mortgaged investors had a market share of 29%, or in other words it has been a sustained ‘record’ peak for their property purchasing activity.
With the dust now settling a bit on the new policy measures aimed at investors, the evidence suggests that the effects on the market may not be as significant as initially thought.
Last week’s announcement from the Government aimed at tipping the market balance in favour of first home buyers has dominated media coverage of the property market, and with the latest data showing continued value growth, it would appear the heightened attention is justified.
It was no surprise that the Reserve Bank’s stats on overall mortgage lending activity were strong again in February.
Today’s housing policy changes announced by the Government were pretty bold, especially the move to stop interest deductibility against tax for investors.
'Mapping the Market' provides insight into how the value of property varies across cities, across the country, as well as how values have shifted over time in an interactive format.