Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
The Rental Affordability Snapshot (RAS) was originally developed by the Social Action Research Centre at Anglicare Tasmania to highlight the lived experience of looking for housing whilst on a low income. An audit of rental properties determines the extent to which on the nominated day a person on a low income is able to find … Continue reading “Sydney Rentals Unaffordable For Many – Anglicare”
The ABS published revised First Time Buyer data to try and iron out some data issues. As a result in November 2014 an extra 1,566 loans (25.8%) were found. This means First Time Buyer Loans were 14.6% of new loans in November, as opposed to 11.6% reported previously. Still a low number, compared with the … Continue reading “First Time Loans Now 25% Higher – ABS”
Fitch Ratings “Global Housing and Mortgage Outlook” suggests House price growth is expected to moderate across the Asia-Pacific region in 2015, driven by government regulatory pressures, tightened affordability and gradual interest-rate rises. The growth slowdown will be led by Australia, where national house prices are forecast to rise 4% in 2015, down from 7% in … Continue reading “House Price Growth Set To Fall – Fitch”
The Bank of England just released their latest Financial Stability report. Within the document there is a section on the implementation of macroprudential measures relating to mortgage lending. This makes an interesting contrast with the Australian Regulatory framework. Mortgage affordability test – Implemented: When assessing affordability, mortgage lenders should apply an interest rate stress test … Continue reading “UK Macroprudential Update”
The Australian Prudential Regulation Authority (APRA) has today written to authorised deposit-taking institutions (ADIs) outlining further steps it plans to take to reinforce sound residential mortgage lending practices. These steps have been developed following discussions with other members of the Council of Financial Regulators. In the context of historically low interest rates, high levels of … Continue reading “APRA Reinforces Sound Residential Mortgage Lending Practices”
Luci Ellis, Head of Financial Stability Department spoke to the Australian Housing and Urban Research Institute (AHURI) Panel Roundtable. You can hear her remarks, and a transcript is promised later. My notes follow. Cross country comparisons on housing markets are important, but sometimes comparisons need to be used with care, e.g. specific issues like overbuilding … Continue reading “House Prices Match Income Growth – RBA”
The ABS published their housing finance data for April 2014. It is slightly below expectations, but the most significant element is the further rise in investor lending, which accounted for $10.9bn, or 39.4% of loans written. The highest ever was in December 2013, when Investment loans reached 39.6%. According to the ABS, the trend estimate … Continue reading “Investment Loans Break More Records In April”
The ABS released the building approvals data for April 2014. They report that the trend estimate for total dwellings approved fell 1.6% in April and has fallen for four months. The seasonally adjusted estimate for total dwellings approved fell 5.6% in April and has fallen for three months. Looking at private sector houses, whilst the … Continue reading “April Building Approvals Down – ABS”