Aussie Home Loans blog

Get the most out of your home loan.

  • Home
  • Buying Your Property
  • Money Smarts
  • Maintaining Your Property
  • Ask John Symond
  • Life and Style
  • Customer Stories

Category Results

Tag Results

Author Michelle McKinnon Results

Meet with a Broker

5 big events in the 2018 Australian property market

November 20, 2018 By Michelle McKinnon 1 Comment

2018 Australian property marketWhat’s happening in the Australian property market this year and what can we expect in 2019?

2018 has been a big year! We wanted to get a bird’s eye view of the key happenings that shaped the year that was, so we chatted to Tim Lawless, Executive Research Director Asia Pacific of CoreLogic, to hear his insights and see what’s on the cards for 2019.

1. One year passed since the national market downturn

Yes, this did happen, but don’t be too worried. “In October 2018 we saw the 12-month anniversary of the national market downturn, which means things have been tracking backwards for the past year now. Nationally, we have seen dwelling values fall 3.5% over the 12 month period – the largest decline we’ve seen since 2012.” But this isn’t cause for huge concern, advises Tim. “This is to be expected after a strong phase of growth. The five years leading up to that downturn, we were seeing consistent capital gains. For example, Sydney and Melbourne were up around 60-70% before the downturn.”

2. We saw a 10% decrease in sales volume

“The number of sales across the Australian housing market has fallen by about 10% in the past 12 months,” says Tim. Of course, this has a broader knock-on effect. “We see a reversal of the multiplier effect – consumers tend to spend less, state government’s receive less stamp duty, lenders write fewer mortgages, real estate agents take a hit to their commissions, there is less work for building and pest inspectors, conveyancers and removalists, just to name a few impacted industries. The impact of a market downturn is quite broad based.”

3. Mortgage rates are edging higher

“Mortgage rates are edging a little bit higher in response to higher funding costs from overseas. So, in September we saw the average variable mortgage rate rise by 10-15 basis points,” says Tim.
“In the historical context, mortgage rates are still as low as what they’ve been since the 1960s. So consumers and borrowers are still benefiting from very low mortgage rates that are helping to keep a floor under property prices.”

4. Regional markets are outperforming capitals

2018 saw a divergence between capital city markets and regional markets.

“During the growth phase, the capital cities were substantially outperforming the regional areas, now it’s the opposite,” says Tim. “Geelong and Ballarat, in Victoria, are substantially outperforming Melbourne. In New South Wales, there are areas like Wollongong and Newcastle outperforming Sydney. Lifestyle markets are generally seeing healthy demand and the mining regions look to be in the early phase of recovery.”

But how does this sit in the context of the market downturn? “We are seeing regional commissions slowing but nowhere near the same rate as capital city markets and some regional areas. These areas are popular due to a mixture of job growth and labour availability, coupled with housing affordability – these factors are a key driver of stronger conditions in those markets.”

5. Buyers are back in the driver’s seat!

Great news: “Buyers are much more empowered than they were in 2017,” says Tim. “We’re seeing stock levels now at the highest they’ve been since 2012, which means that buyers have a lot more choice and a lot less urgency to get into the marketplace.”

What’s on the cards for 2019?

“Though we’ll continue to see this gradual slowdown that we’ve been seeing throughout 2018, we can look forward to relatively soft housing market conditions with ongoing focus from lenders towards higher quality borrowers.”

Keen to take advantage of the market? Contact your Aussie Broker to see what your options are today.

Related posts:

hot QLD suburbsFive hot suburbs in Queensland that weren’t so hot 25 years ago affordable suburbsAffordable suburbs within 60 minutes of the CBD Hottest Tasmanian SuburbsFive hot suburbs in Tasmania that weren’t so hot 25 years ago Australias most affordable suburbs revealedAustralia’s most affordable suburbs revealed

November 20, 2018 Michelle McKinnon1 Comment 

Filed Under: Buying Your Property Tagged With: buying-property, housing-market, investment-property

Meet with a Broker
Property Guides
Tools and Calculators
Repayment Calculator

About Michelle McKinnon

Michelle is the PR & Content Manager at Aussie and a self confessed foodie. She’s eaten her way through more than 40 countries and is hungry for more trips abroad! Proud to be a Sydney-sider but boasting a dual passport Michelle is keen to indulge her wanderlust and return to Spain and Italy for more flavour filled adventures.

  • 10properties10years

    2019 is going to be a much better year for property market I suppose, looking forward to it.

Search the Aussie Blog

Borrowing Calculator
Repayment Calculator
Property Guides
Meet with a Broker

Connect with us

Popular Posts

  • Buying Your First Home With Little or No Deposit Buying Your First Home With Little or No Deposit With the property prices where they are today there has...
  • If you’re thinking that it could be a good time to buy your first home but aren’t sure about how you can get your foot onto the property ladder or if you have saved enough

    More...
  • 7 easy ways to add ‘wow’ to your outdoor area (and value to your home) 7 easy ways to add ‘wow’ to your outdoor area (and value to your home) Outdoor space is highly prized by home buyers, but ther...
  • Outdoor space is highly prized by home buyers, but there’s no need to spend a fortune on professional landscaping. Our seven simple projects can add value to your lifestyle – and your home. Don’t underestimate

    More...
  • Five reasons you may transfer home ownership Five reasons you may transfer home ownership While selling on the open market is an obvious one, the...
  • While selling on the open market is an obvious one, there are several other reasons why you may be transferring home ownership. Here are five of these reasons, plus guidance on your legal and financial

    More...
  • House number numerology: Do you live in a lucky house? House number numerology: Do you live in a lucky house? For numerologists, a property’s number can say a lot ab...
  • Discover what the best house numbers are, according to house number numerology. When you’re in the market for a new home or investment property, there are plenty of boxes to tick - large kitchen, off-street parking,

    More...
  • Construction loans and how they work Construction loans and how they work With residential property prices rising across our capi...
  • With residential property prices rising across our capital cities, it’s no surprise that we’re also seeing a rise in construction loans as savvy home owners and buyers look for a cheaper alternative to buying and

    More...
The fine print Moderation Policy

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. © 2019 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.