PropertyBuzz, your daily dose of property news.
Saving a 20% deposit in Australia now takes 10 years, How mutual agreements can benefit tenants and landlords, and Is the market shifting back in favour of buyers?
Welcome to Property Buzz! I’m Grace Ormsby.
Today is Tuesday, 28 November, and
a report from ANZ and CoreLogic has revealed it now takes 10 years for the average Australian to save a 20% deposit.
– In Australia’s most expensive market, this number stretches to 12.6 years, and a whopping 58.1 per cent of income is needed to service a new loan.
– Melbourne has seen some improvements in affordability due to greater dwelling completions, cutting down the time needed to save a deposit to 9.6 years.
– The affordability gap between houses and units has increased to 28.6%, and regional Australia is no longer significantly more affordable than the cities due to a 44.4% increase in dwelling purchase values since COVID.
Looking over to the rental market,
– Real Estate Institute of Australia president, Hayden Groves, has encouraged tenants to negotiate mutual agreements with landlords for home improvements.
– Mr Groves suggests these agreements can benefit both parties, as they allow tenants to make desired changes and assure landlords that their investment is protected.
– Tenancy Skills Institute CEO, Paul Tommasini, supports the idea of mutual agreements and emphasizes the importance of effective for sustainable tenancies.
And when it comes to the housing market, odds may be swinging in buyers’ favour.
– According to CoreLogic, the week ending 26 November had the lowest preliminary clearance rate since mid-March 2023, with a rate of 65.9% across Australia’s combined capital cities.
– Despite high auction activity in Melbourne and Sydney, buyers have become more cautious, leading to lower success rates.
– Both cities have seen final clearance rates drop below the decade average.
– CoreLogic predicts strong auction volumes for the end of 2023, but expects selling conditions to soften into 2024, indicating a shift towards buyers’ market conditions.
That’s it for today.
See you again tomorrow, 29 November, for your daily dose of Property Buzz.