The big four have reduced their maximum loan size to borrowers... Sydney home prices have biggest quarterly drop in four years...
Banks cut maximum loan sizes
The big four have reduced their maximum loan size to borrowers, a reflection of tougher lending standards as property prices weaken, according to an article in the Sydney Morning Herald.
The tightning of lending policies is affecting owner-occupiers and investors as they experience a sharp fall in their borrowing power.
The tougher policies are thought to be the main reason for the sharp slowdown in the housing market, resulting in lower auction clearance rates and prices in Sydney and Melbourne.
The latest data from Corelogic RP Data shows Sydney prices fell 1.2 per cent in December while national house prices were flat.
In depth: How self-awareness can help you in 2016
Sydney Home Prices Have Biggest Quarterly Drop in Four Years
(Bloomberg) -- Sydney home prices fell for the second- consecutive month and recorded the worst quarter in four years as a regulatory crackdown pushed up mortgage rates and dented affordability amid record prices.
Home values in Australia’s largest city dropped 1.2 percent in December from a month earlier following a 1.4 percent decline in the previous month, data from property researcher CoreLogic Inc. showed Monday. This is the first time since May 2013 that Sydney dwelling values have dropped for two straight months.
Prices in Australia’s capital cities have jumped almost 55 percent in the past seven years as mortgage rates dropped to five-decade lows and foreigners, including from China, accelerated their purchases of local homes. The gain was led by Sydney where the median home value has almost doubled since 2008. In another sign of a cooling property market in Australia’s most populous city, Sydney home prices fell 2.3 percent in the quarter ended Dec. 31, making it the weakest performing capital city, CoreLogic said in an e-mailed statement.
“Throughout 2016, we may see further moderate value declines in Sydney and Melbourne,” Tim Lawless, head of research at CoreLogic, said in the statement. “However, considering population growth has remained strong in these areas and economic conditions are very healthy in these cities, we would be surprised if dwelling values fell materially before conditions start to level.”
Melbourne prices dropped 1.9 percent in the quarter despite a 1 percent increase last month, according to the data. Values dropped 1.4 percent on average in the quarter across all the capital cities with only Brisbane and Adelaide bucking the trend.
In depth: 5 ways to stronger, better referral partnerships
The big four have reduced their maximum loan size to borrowers, a reflection of tougher lending standards as property prices weaken, according to an article in the Sydney Morning Herald.
The tightning of lending policies is affecting owner-occupiers and investors as they experience a sharp fall in their borrowing power.
The tougher policies are thought to be the main reason for the sharp slowdown in the housing market, resulting in lower auction clearance rates and prices in Sydney and Melbourne.
The latest data from Corelogic RP Data shows Sydney prices fell 1.2 per cent in December while national house prices were flat.
In depth: How self-awareness can help you in 2016
Sydney Home Prices Have Biggest Quarterly Drop in Four Years
(Bloomberg) -- Sydney home prices fell for the second- consecutive month and recorded the worst quarter in four years as a regulatory crackdown pushed up mortgage rates and dented affordability amid record prices.
Home values in Australia’s largest city dropped 1.2 percent in December from a month earlier following a 1.4 percent decline in the previous month, data from property researcher CoreLogic Inc. showed Monday. This is the first time since May 2013 that Sydney dwelling values have dropped for two straight months.
Prices in Australia’s capital cities have jumped almost 55 percent in the past seven years as mortgage rates dropped to five-decade lows and foreigners, including from China, accelerated their purchases of local homes. The gain was led by Sydney where the median home value has almost doubled since 2008. In another sign of a cooling property market in Australia’s most populous city, Sydney home prices fell 2.3 percent in the quarter ended Dec. 31, making it the weakest performing capital city, CoreLogic said in an e-mailed statement.
“Throughout 2016, we may see further moderate value declines in Sydney and Melbourne,” Tim Lawless, head of research at CoreLogic, said in the statement. “However, considering population growth has remained strong in these areas and economic conditions are very healthy in these cities, we would be surprised if dwelling values fell materially before conditions start to level.”
Melbourne prices dropped 1.9 percent in the quarter despite a 1 percent increase last month, according to the data. Values dropped 1.4 percent on average in the quarter across all the capital cities with only Brisbane and Adelaide bucking the trend.
In depth: 5 ways to stronger, better referral partnerships
