Australia: Strengthening dwelling price recovery – Westpac
|Matthew Hassan, senior economist at Westpac, suggests that the recovery in Australian dwelling prices that began in mid-2019 accelerated in the final quarter, sustaining a robust pace into year end.
Key Quotes
“The CoreLogic home value index, covering the eight major capital cities, rose 1.2% in the Dec month following a very strong 2.0% gain in Nov and a 1.4% rise in Oct, giving a 4.7% gain for the final quarter. Prices rose 3% for the year as a whole – a 7% rebound in the second half more than offsetting a 3.8% decline in the first.”
“Prices nationally have recovered just over half of the 2017-19 correction. They are still 3.9% below their 2017 peak but at the current pace will regain that level by mid-2020.”
“Several factors contributed to the turnaround in 2019 including: reduced uncertainty around housing-related tax policy following the Federal election; 75bps in official rate cuts from the RBA; and some easing in regulatory guidelines around loan serviceability assessments.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.