This week our market review covers analysis of the country’s economic indicators used and published by the Reserve Bank.  This is the data the RBA Board uses to make their decisions about interest rates and economic advice to the Federal Government.

The performance data up to 30 September 2020 shows that owner occupiers are in the box seat again this month.

This can clearly be seen from the Housing Loan Commitments charts showing investor activity lagging approximately $10,000,000,000 behind owner occupier loans.  Note the slight bounce with investor lending, indicating that side of the market may have bottomed out.

The Housing Prices chart demonstrates the minimal impact the virus crisis has had on prices so far in comparison to the GFC and the credit squeeze of 2017 – 2019. 

Newly advertised properties for sale appears to have flatlined which will light a fire under prices if this situation continues.  We would normally expect an increase in properties for sale in September, and the lack of stock will be a cause of frustration for buyers.

The days on market – an indicator of the days a property is on the market before a purchase is agreed – continues to trend downwards along with vendor discounting.  Yet another influence on increasing property prices. [For those of you who are really interested in the details . .yes . .these two charts report on August activity – this is the most up to date data the RBA can access as sales need to be registered before it can be collated.]

Source : Core Logic
Source : CoreLogic
Source : CoreLogic
Source : CoreLogic
Source : CoreLogic
Source : CoreLogic

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