Fitch: Australian housing supply and demand in balance

The US-based credit ratings agency, Fitch Ratings, published a new report on the Australian housing sector, noting that the housing sector fundamentals are balanced.

Key Quotes:

“Australia's high house prices and record levels of housing construction have not yet pushed demand and supply out of balance”

“Although housing completions reached a record quarterly high in June 2016, Australian dwellings completed, when compared to population, have remained relatively stable over the recent years”

“Oversupply could result if the increase in home completions outpaces population growth, which could lead to a decline in property prices”

“Property price growth is a key driver of mortgage performance”