Rising property prices; the driver for home loan commitments increase
Timothy Hibbert from Oxford Economics dissects the current dynamics of Australia’s property market. He highlights a 5.4% rise in new home loan commitments for the biggest monthly gain since May. Intriguingly, Timothy notes the continuing price appreciation amidst a period of monetary tightening as an unexpected outcome.
As homeownership transfers rise and prices approach double digits in some cities, he perceives that the market has demonstrated significant resilience. Furthermore, Timothy touches on the substantial performance of the housing markets across Western Australia and Queensland, while Victoria and Sydney have had somewhat weaker market fluctuations lately. Coincidentally, he emphasises the stark increase in the average loan size in Australia, reaching roughly 610,000 AUD. However, he bears a concerning revelation about first home buyers, whose volumes he identifies as currently being subdued despite incentives such as the first home guarantee from the federal government.
Watch Tim Hibbert’s full interview below:
Timothy Hibbert
Head of Building & Property Forecasting, Oxford Economics
+61 (0) 2 8458 4270
Timothy Hibbert
Head of Building & Property Forecasting, Oxford Economics
Sydney, Australia
Timothy Hibbert leads the property, building, and demographic forecasting at BIS Oxford Economics. He has over 15 years of experience as an industry economist, working across government, consultancy, and subscription services.