Home News Bankers remain calm over Aussie property market, study says

Bankers remain calm over Aussie property market, study says

Font size :
A new report by the Australian Bankers’ Association (ABA) may hush concerns of a property market bust, claiming that the price hikes are not unusual and borrowers could manage increasing rates.
                                                                                                                   
The report titled “Key Truths on Housing in Australia” also stated there is “insufficient evidence” of a speculative bubble. It assessed the market for the past 25 years.
 
“House prices in Australia are currently in a period of strong growth. (But) there is insufficient evidence to conclude that house prices are unsustainably overvalued or that Australia is currently experiencing a speculative ‘bubble’,” the report says, as quoted in The Australian.
 
ABA found that the biggest driver of prices is mortgage rates dropping below 5%.
 
The study also supported a Reserve Bank of Australia report this week that showed the highest debts are held by wealthy, less risky borrowers.
 
However, ABA admits in its paper that houses are expensive relative to rents and “current rates of return may be economically viable only if expectations of further price gains are fulfilled”.
 
“The recent rise of house prices in Australia is not unusual when compared with historical trends, and the current house price growth has not exceeded the peak rates we saw before the global financial crisis,” said Steven Munchenberg, chief executive of the ABA. 
 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Aug 17, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords