APRIL EDITION
09 limits . But in Australia , which record the fastest house price growth in 32 years in March alone , regulators are waiting to see the effect on incomes from the wind-up of record government wage subsidies , cash boosts and $ 10 billion in bank interest payment deferrals .
Australian Prudential Regulation Authority chairman Wayne Byres said that while certain risks were rising there was no need for intervention just yet . “ We are alert to signs that very low interest rates and rising housing prices create a dynamic in which households seek to take on even higher debt levels , and that banks searching for credit growth seek to accommodate that demand through greater risk taking ,” Mr Byres told The Australian Financial Review Banking Summit . household debt were contributing to house price growth . Instead , he blamed an imbalance in supply and demand . “ I don ’ t think big bank debt is a driver of house prices ,” Mr King said . “ If I look at what ’ s happening in housing debt , there is growth , but it ’ s not like it ’ s investor or interestonly led , which [ it was ] the last time we saw big house prices . I think it ’ s a fundamental supply-and-demand issue ,” he said . Westpac recently upgraded its residential property growth forecasts to indicate that nationwide home prices could rise 20 per cent over the next two years .
As always we remind you the future remains uncertain for many reasons :
• The international border remains shut to everywhere now except New Zealand
What we do know is that market fundamentals right now are helping our clients who are looking to sell . Our data tells us that our sellers who choose to sell via the auction method are rewarded with almost 12 per cent higher price under the hammer than if they ’ d accepted a prior offer . We cleared 82 per cent of all auction stock last month , with record numbers of registered bidders . There ’ s a deep buyer pool for sellers to take advantage of right now . Our question remains , “ What are you waiting for ?”
Westpac chief executive Peter King said he did not think record low interest rates and growing
• The number of properties for sale will increase over 2021 which creates more choice for buyers .
“ Demand is expected to remain strongest from first-time buyers and upgraders , many of whom are spending money on a house they might otherwise have used on overseas holidays . ”