Is it a celebration? Is it really the correct title for this blog .. I am unsure however with a recent release from Core Logic showing a 12th month straight fall in the market. This is Australia wide; Sydney and Melbourne prices are now6.2% and 4.4% down from their respective peaks in July and November 2017.
“With the release of the banking commission interim report, there is a chance that already tight credit conditions could tighten even further,” CoreLogic head of research Tim Lawless said in a statement.
“The constant theme from the report is that regulators should monitor and enforce existing policy much better, while lenders and brokers need to place client interests ahead of profits. This implies a much more conservative lending approach going forward which is likely to impact further on credit availability.”
This is a National felt reduction in housing prices. National dwelling values fell 0.5 per cent over the month, with five out of the eight capital cities posting declines. Sydney was down 0.6 per cent, Melbourne 0.9 per cent, Adelaide 0.2 per cent, Perth 0.6 per cent and Darwin 0.4 per cent. Brisbane was up 0.2 per cent, Hobart 0.4 per cent and Canberra 0.3 per cent.
The higher end of the market has seen the biggest price declines. The Reserve Bank data shows housing credit growth tracking at the lowest level in nearly five years, while investor-related credit is growing at the slowest pace in record.
On Friday, the banking royal commission released its long-awaited interim report, slamming the financial institutions’ “greed”-driven misconduct and the ineffectual regulators’ lack of action.
“Make no mistake, today is a day of shame for Australia’s banks,” Australian Banking Association chief executive Anna Bligh said. “Having lost the trust of the Australian people, we must now do whatever it takes to earn that trust back.”