It’s been a big week for anyone interested in the property market.
Data released by CoreLogic on Monday showed that property prices in Sydney and Melbourne are up for the first time since 2017.
On Tuesday the Reserve Bank of Australia cut interest rates for the 14th time in the current elongated monetary policy easing cycle that began in November 2011.
The official cash rate hit a record low of 1 per cent and the RBA governor Philip Lowe suggested the bank will be seriously considering further rate cuts in the months ahead.
On Tuesday evening the government’s full tax package passed the House of Representatives, with Prime Minister Scott Morrison promising tax cut lump sums of up to $1080 would be arriving in Australians’ accounts as early as next week.
Wednesday may have been a day of financial rest for the Australian economy but then on Thursday evening the Coalition’s full $158 billion income tax plan passed through the Senate.
And on Friday (today) the Australian Prudential Regulation Authority removed the serviceability buffer that requires banks to assess all borrowers against their capacity to repay their loan at 7 per cent.
RESO CEO Kate Chalk says that The Financial Review’s headline “APRA bins buffer, lets lending rip” says it all this morning with details emerging that “under the new rules banks will merely add 250 basis points to the rate paid in order to assess whether or not the loan is suitable for the borrower”.
“We know how hard agents all over Australia have been working to provide exceptional service to Australian home buyers and vendors who have being doing it tough for a while and we truly welcome this string of good news for the housing market,” Chalk says.
“According to CoreLogic’s Research Director, Tim Lawless, a couple with two children and an income of $150k per annum can now increase their borrowing by around $67K.
“This is really good news and along with interest rate cuts and the government’s tax cuts arriving in bank accounts very soon, its onwards and upwards.
“We look forward to continuing to partner with agents to deliver exceptional customer experiences as the Australian property market continues to adjust to changing conditions.”
For more information about how RESO – Real Estate Sales Online – can help streamline the property buying and selling process please go to legacy.reso.com.au or call 1300 123 091.