What trends will influence the housing markets in the future?
Real estate remains a hot topic for Australians and there are many different opinions and perspectives, depending on where you sit in the market. Corelogic has released the key trends they believe will impact property throughout the remainder of 2018. Here's what the data experts had to say.
Investors The latest ABS housing finance data shows investors are still very active and comprise 51 per cent of new mortgage demand; well above the long run average of 37 per cent and despite tougher serviceability criteria and mortgage rate premiums.
First homebuyers On the other hand, first home buyer activity is on the rise thanks to stamp duty concessions and now accounts for 15 per cent of housing finance. Corelogic believes, ‘rentvesting’ - where you rent in your preferred area and buy somewhere more affordable - is likely to become more popular among first-time buyers.
Government According to the Corelogic, we can expect housing supply to be a priority among government housing policies, including more affordable options.
Developers We can expect to see developers shift away from high-rise construction towards medium density options, building town houses and terraces that meet the needs of families.
Lenders While the cash rate isn’t likely to rise this year, mortgage rates could still push a little higher due to increased funding costs on capital markets. However, it could also be feasible for lenders to slightly relax their lending policies as APRA limits around credit growth and interest only lending have been comprehensively achieved.