At a glance: Positive first homebuyer's sentiment jumped to 51% from 38% Property market sentiment increased to net positive 21% up from 7% Ninety-two per cent of respondents agree that housing affordability is a big issue in Australia

At a glance:  Positive first homebuyer's sentiment jumped to 51%  from 38% Property market sentiment increased to net positive 21% up from 7% Ninety-two per cent of respondents agree that housing affordability is a big issue in Australia

Housing supply has picked up slightly, but with prices rising and demand outweighing supply, there’s no wonder that almost 1 in 2 Aussies don’t think there’s enough choice available

Posted on January 31, 2020 by ljgrealestate 据联大

House prices may be on the increase, but that has not quenched the desire of first home buyers to get into the property market.

According to ME’s fourth Quarterly Property Sentiment Report first homebuyers’ hopes of breaking into the market have jumped dramatically, with half (51%) of first home buyers planning to buy property in the next 12 months, compared to 38% in Q2 2019.

The report performed a survey of 1,000 Australians in the property market – conducted in January, Q1 2020.

At a glance:

• Positive first homebuyer’s sentiment jumped to 51%  from 38%
• Property market sentiment increased to net positive 21% up from 7%
• Ninety-two percent of respondents agree that housing affordability is a big issue in Australia

“Rising property prices carry the risk of squeezing first-home buyers out of the market, however, they also signal a healthier market that presents a worthwhile long-term investment,” said ME’s General Manager Andrew Bartolo.

“In the case of first home buyers, the recent property price recovery has likely nudged them to get in while they can – as though it’s ‘now or never’ – and has created a sense of FOMO (Fear of missing out).

“Low-interest rates and commentary in the market for the support of first home buyers may have also contributed to an increase in home-buying intentions.”

Recent property prices across Australia’s key property markets aren’t expected to halt any time soon, according to Aussies in the property market.

Source: ME Bank

Over half (55%) of respondents predict prices to rise over the next 12 months – a massive jump from the mere 38% who predicted price rises in Q3 2019 when the market first began to turn.

Strong house value growth is predicted by Victorians more than any other state; with 67% of Victorian respondents predicting prices to go up – a 10 percentage point jump from last quarter’s prediction, and a 34 percentage point jump from their Q2 2019 prediction.

All other major cities had a more positive outlook on prices than last quarter, including WA where last quarter more was predicting price falls than rises.

Positive house price expectations were seen across owner-occupiers, first home buyers and investors.

The report shows sentiment towards the property market has improved for the third quarter in a row, increasing to net positive 21% (up 3 percentage points from Q4 2019, and up 14 percentage points from Q2 2019 when the report first started).

“Considering a combination of market factors including the buzz of home value growth, a solid spring selling season, plus rate cuts and signs from the RBA that rates will stay lower for longer, it’s no surprise overall property sentiment has improved,” said Mr Bartolo.

Investor optimism has dipped slightly and is now on par with that of owner-occupiers, as rising prices present a potential barrier to this cohort.

ME’s report revealed price positivity and overall market sentiment isn’t flowing through to spending habits.

Recent property price movements have negatively impacted ‘willingness to spend on discretionary items’ for another quarter in a row.

It remains the only area of personal finances that has stayed net negatively impacted – sliding deeper from net negative 3% to net negative 8% over the past quarter.

All other areas of personal finances analyzed such as a sense of wealth, financial confidence, savings behavior and debt situation, remain net positively impacted by recent price movements.

“Despite market positivity and a stronger sense of wealth, there’s less willingness to spend on discretionary items – a trend that bucks the wealth effect theory.

“Much broader economic dynamics are obviously at play,” said Mr Bartolo.

Growing optimism over the past quarter has eased most financial worries, but housing affordability still tops the list.

Ninety-two percent of respondents agree that ‘housing affordability is a big issue in Australia’, up from 89% in Q4 2019.

ME’s report explored the level of personal worry towards affordability, as well as acknowledgment of the issue, for the first time and found net 14% agree with the statement ‘I’m worried about property becoming unaffordable’ – making it the top worry.

All other perceived worries in ME’s report have eased to the lowest point since the survey began in Q2 2019.

Tight credit policies are becoming less of a concern with only net 6% agreeing it’s a worry (down from net agree 16% last quarter).

Concern over negative equity has dropped dramatically to net disagree 34% (from net disagree 12% last quarter), likewise, worry about being forced to switch to interest-only payments also slid to net disagree 30% (from net disagree 12% last quarter).

The report also tracked the perception of choice in the property market and found almost half (46%) of total respondents believe there is not enough choice, with this figure jumping to 57% among first home buyers.

“Housing supply has picked up slightly, but with prices rising and demand outweighing supply, there’s no wonder that almost 1 in 2 Aussies don’t think there’s enough choice available,” said Mr Bartolo.

“With so many first home buyers planning to buy in 2020, yet most stating choice in the market is a barrier, addressing this issue should be a focus in the year ahead.”

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Linda 姬琳达珍 and Carlos Debello (LREA)

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This is how state governments will change tenancy laws in 2020 Key proposed changes in Queensland (under consultation)

Key proposed changes in Queensland (under consultation)

• Owners will be asked to provide reasonable grounds for denying tenants the right to own a pet.
• All rental properties will need to meet new minimum standards.
• Landlords will no longer be able to evict tenants without cause once a fixed-term agreement expires (i.e. banning no grounds evictions).
• The government will make it easier for renters to experience domestic and family violence to end tenancies without the usual notice requirements.
• https://www.yoursayhpw.engagementhq.com/rentinginqld
• State governments are responding to the surge in long-term renting by introducing a raft of new reforms aimed at boosting the rights of tenants.
  Tenants’ advocates have welcomed the proposed changes but argue governments should go even further by abolishing ‘no grounds’ evictions.
  Landlords have said the reforms will discourage investment and consequently drive up rents.
  NSW, Victoria and the ACT have already legislated changes.
  While the exact reforms vary from state to state, all three governments will limit rent increases, make it easier for tenants to make minor modifications, and allow domestic violence victims to immediately terminate a contract free of charge.
  Queensland plans to introduce similar laws later in the year. Western Australia and the Northern Territory are currently reviewing their regulations. And South Australia and Tasmania made small changes a few years ago.
  (Lists of reforms are included at the bottom of this article.)
  Better Renting executive director Joel Dignam said the reforms were a “positive step in the right direction”.
  But he told The New Daily they were overshadowed by the looming threat of a no-grounds eviction, with most tenants feeling too insecure to confidently assert their rights.
  “As long as no grounds terminations can happen, tenants are worried,” Mr Dignam said.
  “So even if the law says they can ask for a pet, they might not ask for a pet because even if the landlord has to say yes, the landlord can then terminate their tenancy for no reason.
  “So that fundamentally undermines the security of the tenancy contract.”
  All states currently allow landlords to evict tenants without cause once a fixed-term agreement expires – so long as they provide the required notice.
  But Victorian landlords will lose this power in July, when 130 new reforms come into effect. And Queensland landlords might lose it, too, if the state government manages to pass its proposed changes.
  Such changes went against Australia’s historic commitment to private property rights.
  Increased engagement between landlords and tenants would have led to better outcomes than “heavy-handed legislation” – would discourage investment and push up rents.
  Pets are a good example. The reality is pets can cause damage to property. The legislation can say whatever it wants about pets, but that’s a fact.
  “So I think it is completely wrong for any state government, at any time, to say, ‘we’re going to pass some legislation that removes the right of the asset owner to say yes or no to pets’.”
  We consider applications from pet-owning tenants on a case-by-case basis and had had good experiences in the past.
  Pet owners often offered to pay an extra $5 a week to cover the increased financial risk, while many stayed put for longer, to avoid repeating the “frustrating” process of finding a pet-friendly home.
  Individuals who lease such an expensive asset should be entitled to “put some conditions about how it’s used and when it’s returned”.
  This is what the industry should be doing, specific to pets: Engaging in that discussion and getting landlords to see that it’s not all about risk. There’s also some opportunity there.
  But the tenants need to get off their high horse. They don’t have the right if they don’t own the property.

  Key changes in NSW (Applicable to leases signed after March 23, 2020)

  • Landlords must make sure their rental property is “structurally sound”; contains private bathroom facilities; and provides adequate lighting, ventilation, gas and electricity.
  • New penalties for landlords who fail to maintain smoke alarms.
  • Landlords will no longer be able to unreasonably stop tenants from making renovations of a “minor nature”.
  • Set break fees for tenants who cancel a fixed-term agreement.
  • More information can be found here. 

  Key changes in VIC (Applicable to leases signed after July 1, 2020)

  • Landlords will no longer be able to evict tenants without cause once a fixed-term agreement expires (i.e. banning no grounds evictions).
  • A new blacklist will name and shame dodgy landlords.
  • Tenants will be allowed to make minor modifications without their landlord’s consent.
  • Rent increases outside fixed-term agreements will be limited to one per year.
  • Landlords can only stop tenants from keeping a pet if they obtain an official order from the Victorian Civil and Administrative Tribunal.
  • More information can be found here. 

  Key changes in ACT (came into effect on November 1, 2019)

  • Rent increases outside fixed-term agreements are limited to one per year.
  • Rental agreements cannot prohibit pets completely.
  • Landlords can only refuse consent to tenants who wish to make minor modifications if they obtain approval from the ACT Civil and Administrative Tribunal. Minor changes include: Installing picture hooks, setting up a herb garden, and affixing blinds to a window.
  • More information can be found here.

  Key proposed changes in Queensland (under consultation)

  • Owners will be asked to provide reasonable grounds for denying tenants the right to own a pet.
  • All rental properties will need to meet new minimum standards.
  • Landlords will no longer be able to evict tenants without cause once a fixed-term agreement expires (i.e. banning no grounds evictions).
  • The government will make it easier for renters to experience domestic and family violence to end tenancies without the usual notice requirements.
  • https://youtu.be/pZnY0Gav9Y4
  • More information can be found here. 
  • Best Regards
    
    
    Linda 姬琳达珍 and Carlos Debello (LREA)
    LJ Gilland Real Estate Pty Ltd
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    http://ljgrealestate.com.au/testimonials/
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    PO BOX 19
    ZILLMERE 4034
    Ph: 07 3263 6085
    
    
    

     
    
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Brisbane Report Dec 2019

Greater Brisbane has provided owner-occupiers and investors consistent results. While other cities plunged into decline, Brisbane houses produced steady price growth over the past seven years. House prices rose 1.3 percent over the final quarter of the year, the biggest quarterly movement in two years, pushing values to a new record high of $577,664.

Units continue to underperform, with prices softening annually over the past two-and-a-half years. Prices are now 8.7 percent below the mid-2016 peak. Rising supply has been at the core as an increasing number of developments flooded the market. At the moment, the unit market remains firmly a buyers market, with the opportunity to purchase at an almost six-year low. However, as unit commencements plummet and construction continues to fall from the late 2016 peak, excess supply will eventually be absorbed by the rising demand.

The state government’s infrastructure planning strategy will provide Brisbane an economic boost over a number of years. It will help to drive job creation and subsequent population growth, which means the demand for housing will continue. Brisbane has been benefiting from a rebound in owner-occupiers utilizing lower mortgage rates, however, investors are likely to continue to be drawn to Brisbane by affordability and higher rental yields compared to other east coast cities, as well as the potential to capitalize on areas that will benefit from improved connectivity.

Median Price

December 2019 QoQ Change

HOUSES

1.3% 

Median Price $577,664

UNITS

-3.4% 

Median Price $377,549

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5 financial trends to look out for in 2020

In December 2019, the Reserve Bank of Australia (RBA) made its final monetary policy decision for the year, leaving the cash rate unchanged at 0.75%.

As the central bank takes a break from its monthly monetary policy meeting, returning in February, now is a good time to reflect on the year that was 2019 and contemplate what could be in store for 2020.

Following the release of the Royal Commission final report in early 2019 lending regulations tightened in some areas, whilst in other areas record low interest rates made it easier for consumers to access finance.

In light of these events, and other shifting economic conditions, here are some financial trends likely to emerge in the new year.

First Home Loan Deposit Scheme could see FHBs flood the market

In August, the Prime Minister’s pre-election promise of a First Home Loan Deposit Scheme (FHLDS) was confirmed.

The impact of this short-term stimulus will be seen from 1 January 2020, with the two non-major lenders, Commonwealth Bank of Australia and National Australia Bank, gaining government approval to offer the guaranteed loans from this date.

While the scheme is currently limited to 10,000 first-home buyers (FHB) per year, RateCity spoke with one analyst predicting this scheme could see a surge of FHBs entering the market.

“When the First Homeowner Government Back Grant kicks in next year, I expect significant take up (two big lenders will have the lead), and therefore the 10,000 loans available will go quickly,” said Martin North, Principal of Digital Finance Analytics (DFA).

“This is likely to lead to the Government looking to expand the scheme based on demand, despite the fact this may also lead to upward pressure on some home prices as a result.”

The implementation of this scheme could also boost confidence in a time when wage growth is stagnant and household expenditure remains low.

Home loan interest rates could drop even lower

The year 2019 saw three RBA cash rate cuts of 25 basis points each, pushing both home loan variable and fixed rates to historical lows.

Though not been passed on in full by all lenders, the rate cuts led to a number of variable home loan rates on offer below 3 %. These rates, whilst transient in nature and therefore subject to an increase in the future, saw home loan lending lift in the latter part of this year.

Homestar Finance, a smaller lender offering variable rates as low as 2.74%, reports that it has seen a pick up in demand from both refinancers and new buyers due to these record low rates.

“The second half of 2019 has delivered three rate cuts and we always strive to deliver timely rate decisions following the RBA announcements,” said Mandy Sly, General Manager of Homestar Finance.

“This great service has seen an influx of enquiries from all borrowers, both refinancers and new buyers and we expect this demand will increase across the market if the RBA continues to cut rates next year.”

Rates starting with 2 were predominantly offered by non-major lenders and credit unions, however larger lenders like St George and NAB also dropped their variable rates as low as 3.09 % and 3.20 % respectively.

In his final statement for 2019, RBA Governor Philip Lowe suggested that further rate cuts could be on the horizon, which could mean home loan rates will drop even lower in 2020.

“Due to both global and domestic factors, it [is] reasonable to expect that an extended period of low interest rates will be required in Australia to reach full employment and achieve the inflation target,” he said.

“The Board is prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time.”

Open banking could see consumers taking control of their data

Open banking legislation passed through parliament in August this year, signalling a new era for Australian banking. This legislation provides new rights for consumers and small businesses, and was developed to give them more control over their financial data.

The regime has been introduced as a way to increase competition in the financial industry, whilst making the process of refinancing or switching banks a much less arduous process.

From February 2020, the big four banks are required to provide access to consumer’s financial data. Although there is speculation that this will affect the average consumer’s borrowing power next year, other commentators believe the impact will take longer to materialise.

“We think Open Banking will be fantastic when it comes around, but implementation is likely to be slower than everyone expects, and it will not significantly impact the market in 2020,” said Simon Bligh, CEO of illion.

“The good news, however, is that illion’s Open Data Solutions business already offers the capability of Open Banking in a pre-Open Banking world.”

While Open Banking aims to digitise and simplify the banking as a whole, the technology used by illion is similar, but made to work in the housing market. Rather than focusing on banking, illion’s technology is used by a variety of online lenders to reduce the paperwork required when applying for financial products. These systems simplify the process of verifying income and expenses, by using industry leading algorithms to analyse financial data.

Further RBA rate cuts could lead to QE

Source: RBA

The latest gross domestic product (GDP) figures released by the ABS show household expenditure increased by 0.1% in the quarter.

The increase was predominantly driven by a rise in spending on health, rent, and other dwelling services. Spending on discretionary goods and services, however, dropped by 0.3%.

This fall in spending on goods and services, including clothing, hotels, cafes and restaurants, suggests Australians are holding onto their income a little tighter in comparison to recent years.

The data also shows the RBA cash rate cuts may not be having the desired effect on consumer spending. This suggests that further rate cuts and unconventional monetary policy, such as Quantitative Easing (QE), might be on the cards for 2020.

Governor Lowe remained firm in his view that further rate cuts would need to occur before the RBA considered QE, and that it would only become a viable option when the cash rate reaches 0.25 %, not before.

“The threshold for undertaking QE in Australia has not been reached, and I don’t expect it to be reached in the near future,” he said.

“In my view, there is not a smooth continuum running from interest rate reductions to quantitative easing. It is a bigger step to engage in money-financed asset purchases by the central bank than it is to cut interest rates.”

If the cash rate cuts are not having the desired effect on consumer spending, and sits only 50 basis points away from 0.25 %, QE could be a potential reality for 2020.

Housing prices could continue to rise in 2020

In 2019, the cost of housing increased across the country, with five months of consistent growth and the largest monthly gain in Corelogic’s National Index since 2003.

This trend suggests that 2020 could see further increases, especially if lower interest rates fuel an increase in housing demand.

“Sydney and Melbourne continued to drive the rapid recovery, with values up by 2.7% and 2.2% respectively over the month,” said Tim Lawless, Research Director at Corelogic.

“The synergy of a 75 basis points rate cut from the Reserve Bank, a loosening in loan serviceability policy from APRA, and the removal of uncertainty around taxation reform following the federal election outcome, are central to this recovery.”

Source: Corelogic National Index

This focus on Sydney and Melbourne, and the subsequent growth of Australia’s largest cities, is something that Propertyology Head of Research, Simon Pressley, believes does not give Australians the full picture.

“When it comes to property, the human race has always been extremely short-sighted. Auction clearance rates and a quarterly change in median property values are outcomes, they are not fundamentals,” he said.

“Fundamentals to look for on the demand side include improving local economic conditions, growth in job advertisements, accelerating internal migration, local policy changes that will support job creation, a stable government, and evidence that local industries are expanding, not contracting.”Best Regards

Linda 姬琳达珍 and Carlos Debello (LREA)

LJ Gilland Real Estate Pty Ltd

Linda Debello LREA推荐书LJ Gilland房地产
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Dwelling values rose by 1.1% over the month of December and by 4.0% over the quarter to finish out 2019 on a positive note according to the CoreLogic national home value index. This result represents the fastest rate of national dwelling value growth over any three month period since November 2009.  Darwin was the only region amongst the capital cities and ‘rest-of-state’ areas to record a fall in values over the month, with a -0.5% decline.

CoreLogic head of research Tim Lawless said, “Although the monthly capital gains trend remains fast-paced, the 1.1% rise in December was softer relative to the 1.7% gain in November and the 1.2% rise in October. This would suggest that the pace of capital gains may have been dampened by higher advertised stock levels or worsening affordability pressures through early summer.”  

On an annual basis, Australian dwelling values tracked 2.3% higher over the 2019 calendar year with five of the eight capital cities, and five of the seven ‘rest-of-state’ regions, seeing the year out in positive growth territory.  Amongst the capitals, Sydney and Melbourne recorded the highest annual capital gain, with both cities posting a 5.3% rise in dwelling values over the year. Regional Tasmania, where values were 6.1% higher over the year, led the regional markets.  Values were down in Darwin by 9.7%, 6.8% lower in Perth and 0.2% lower in Adelaide over the year, while values also fell across regional Western Australia (-11.8%) and Regional NSW (-1.1%).

Index results as at December 31, 2019

Tim Lawless said, “The positive year-end results mask what has been a year of two distinct halves -we saw capital city dwelling values fall by 3.8% over the first six months of 2019 and then rebound by 7.0% over the second half of the year.  

“The housing value rebound was spurred on by lower mortgage rates, a relaxation in borrower serviceability assessments, improved housing affordability and renewed certainty around property taxation policies post the federal election.  Lower advertised stock levels persisted providing additional upwards pressure on prices amidst rising buyer activity.”

Despite a strong rebound over the second half of 2019, property values across most regions of Australia are still below their previous record highs.  Nationally, the CoreLogic index recorded a peak in October 2017; dwelling values remained 3.1% below their record high at the end of 2019.  If the current quarterly rate of growth persists into 2020, the national housing market will record a nominal recovery in March as dwelling values push higher to new record highs.

Change In Dwelling Values

Tim Lawless said, “A nominal recovery in housing values implies home owners are becoming wealthier, which may also help to support household spending. However, the flipside is that housing affordability is set to deteriorate even further as dwelling values outpace growth in household incomes, signaling a set-back for those saving for a deposit.”  

The only regions where housing values are currently tracking at new record highs are Hobart, Canberra and regional Tasmania. 

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Mortgage rates to hit record lows in 1H20

The official cash rate could fall by a further 50 basis points over the first half of 2020, which would see mortgage rates hit new record lows, according to CoreLogic.

In his outlook for 2020, Tim Lawless, CoreLogic’s head of research, noted that the 75 basis point reduction in the cash rate in 2019 saw mortgage rates drop by an average of 60 basis points, which contributed to the rebound in housing values in the second half of the year, along with APRA’s serviceability assessment changes.

Looking forward, Mr Lawless said that he expects the cash rate to drop by a further 50 basis points over the first half of 2020 (with most commentators expecting the next cash rate reduction to come in February 2020), taking official interest rates down to 0.25 per cent. This, in turn, would see lenders reduce mortgage rates from their already low levels, he said.

Mr Lawless commented: “While the entirety of any rate cuts won’t be passed on in full by lenders, due to already squeezed net interest margins and to ensure depositors remain incentivised, mortgage rates are likely to reduce even further from their current record lows.”

Speaking to Mortgage Business, Mr Lawless said: “We are expecting the cash rate to come down by another 50 basis points over the first half of the year. How much of that gets passed on to mortgage rates is a hard question to answer. I think, the last few rounds of rate cuts, we’ve seen progressively less being passed on the mortgage rates, as lenders look to protect their net interest margins and continue to incentivise the positives.

“So, chances are we could only see on each 25 basis point cut maybe 10 to 15 basis points being passed on.”

The head of research noted that while lower mortgage rates could support a modest rise in buyer demand, he told Mortgage Business that there was a chance that cutting rates to such low levels could have the opposite effect and dent confidence, which would push households further into savings mode and start deleveraging.

He explained: “The thing about lower rates is that it could actually have the opposite effect on consumer sentiment. We’ve already seen that with the previous rate cut; it spooked the market a little bit. Consumers are looking at the very low rates setting [and are thinking it is] because the economy’s losing momentum and that could actually dampen consumer sentiment. 

“So, even if we do see the stimulus of lower rates, it depends how that flows through to the marketplace to mortgage rates and buyer sentiment. Chances are, it will still be positive overall, but maybe not as a stimulatory as what we have seen with the previous rate cuts.”

He added that auction rates are also likely to stay strong over the first quarter into spring but could “ease some of the urgency” that has been seen over the last quarter of 2019.

“As prospective sellers look at the very strong selling rates, the rapid selling time, the high auction clearance rates etc, I do think we will see a lot more stock in the marketplace over the first quarter. And that, potentially, could ease some of this urgency that we’re seeing in the market and start to result in a subtle easing in this rapid rate of appreciation.”

Mr Lawless forecast that both the level and proportion of investor activity is likely to rise in 2020 as they would be motivated by prospects for capital gain, as well as the fact that gross rental yields, although generally low, are likely to be higher than the cost of debt. 

He warned, however, that opportunities for positively geared properties should be more abundant as mortgage rates move lower.

“If investor activity trends materially beyond the long-term average (investors averaged approximately one-third of mortgage demand over the past decade), this could be a trigger for another round of macro-prudential intervention from APRA aimed at curbing speculative activity in the housing market,” he warned.

“The previous round of credit tightening specifc to investors occurred when investors comprised more than 40 per cent of mortgage demand, triggering a macro-prudential response from APRA which limited banks from growing their investment loan books by less than 10 per cent per annum.”

Lisa Claes’ predictions for 2020

The CEO of CoreLogic International, Lisa Claes, has also provided her predictions for the year ahead, stating that while the housing market is on the up, advertised stock levels are at their lowest since CoreLogic started tracking in 2007 and affordability “remains a challenge”, with the average person needing to save more than eight years for a 20 per cent deposit, according to CoreLogic. 

“Despite these barriers, property ownership remains the great Australian dream, with 86 per cent of Millennials surveyed stating it’s important to be on the property ladder. If this is to happen, 2020 needs to herald a change in policy beyond stamp duty concessions and first home buyer grants to a broader-based land tax,” she said.

Indeed, Ms Claes said that the call for action on stamp duty will “no doubt intensify” in 2020 given that the decline in property values in the first half of 2019, as well as low interest rates, did “little to improve affordability”.

“Policymakers must continue to explore alternative, structural solutions,” she said, adding that CoreLogic will “continue to work with key players across both industry and government to develop new approaches to this housing affordability conundrum”.

Looking at the devastating impact of the drought and bushfires in 2019, Ms Claes said that she expected to see “greater emphasis on property risk management” over the coming year.

“With the growing risk of flooding and bushfires, a property’s hazard profile will become just as important as its physical attributes profile,” she said.

“As such, there will be greater demand from our customers for seamless delivery of relevant data relating to property risks in the same way they leverage property values, ownership and construction data.”

In conclusion, Ms Claes said she expected to see further changes in the real estate industry’s operating environment, with the rise of desegmentation. 

“Previously separate market segments will join forces as listing portals become brokers, banks show the same interest in listings as real estate agents do, and insurers and lenders collaborate to apply a more forensic lens to the property risk profile,” she said.

“As new technologies such as artificial intelligence continue to decimate traditional barriers to entry, market competition will also intensify. In step with this trend, CoreLogic will continue to add value by offering data analytics solutions that can integrate seamlessly within our customers’ environments in order to give them a competitive edge in their markets. 

“In spite of the many headwinds, 2020 presents opportunities for all industry players to deliver enhanced customer value over the coming year, and that’s an exciting prospect indeed,” Ms Claes concluded.

The property research group has dubbed the year 2019 as “the year when new records were set”, given the corrections and changes in the housing market.

CoreLogic head of research Tim Lawless has released his 2019 year in review report (The Year that Was), highlighting that this year saw both record lows and highs.

“In 2019 we saw the housing market move through the largest and longest correction on record, followed by a fast-paced rebound in values through the second half of the year,” Mr Lawless said.

“Housing turnover fell to record lows in 2019, as did new advertised stock levels. Interest rates reduced to levels previously unseen, while the concentration of investors in the market also plumbed new depths.”

According to CoreLogic data, the “longest and largest” correction in Australian housing values on record finally reached its floor in June 2019.

Between the market peak in October 2017 and its trough in June 2019, the national index fell by 8.4 percent.

The largest peak-to-trough falls were recorded in Sydney (down 14.9 percent) and Melbourne (down 11.1 percent).

Tim Lawless said the main contributing factors to the rebounded housing market include the surprise results of the federal election in May, which eased the uncertainty around property tax reform, as well as changes to loan serviceability assessments introduced by APRA.

Additionally, 2019 saw three cuts made to the official cash rate in June, July and October, which brought interest rates to record-low levels, also contributing to rebounded housing prices.

According to CoreLogic, 2019 also saw record-low levels of turnover in the housing market, reaching just 4 percent in the spring of 2019, compared with the decade average of 5.3 percent.

Turnover was the lowest in the Northern Territory, at 3.3 percent, followed closely by Western Australia at 3.4 percent, Victoria at 3.9 percent, and NSW at 4.0 percent.

Tasmania, where the housing market has held generally strong, showed the highest turnover rate at 5.1 percent.

Mr Lawless highlighted that persistently low consumer sentiment, high transactional costs, and overall low inventory levels has contributed to low sales activity despite the lift in buyer demand.

In fact, new listings numbers have been consistently tracking at record lows throughout 2019, according to CoreLogic, and even during the spring listing season, new stock remained seasonally low.

Increasing buyer demand and persistently low levels of listings have also contributed to upwards pressure on housing prices.

Further, 2019 saw the lowest level of investor participation in the market on record, with investors comprising of only 24.8 percent of mortgage demand in the year.

While investment lending increased following the federal election results in May, owner-occupier lending increased even more, pushing the proportion of investor lending lower.

With lowers levels of investor participation, this year saw a surge in first home buyers (FHBs), taking advantage of subdued house prices and less competition from investors in the earlier months of the year.

FHBs comprised of almost 30 percent of owner-occupier mortgage demand in September, up from 20 percent four years ago. However, levels of FHB participation are likely to slow as property values continue to increase and investors return to the market.

Mr Lawless shared a summary of his predictions for the year to come in 2020.

“For 2020, we’re likely to see markets in recovery mode as housing prices catch up and then overtake their previous record highs; however, we expect the rapid rate of capital gains seen over the second half of 2019 to lose steam as stock levels rise and affordability deteriorates.”

Well wishes from LJ Gilland Real Estate May Your Dreams And Wishes Come True, and May Prosperity Touch Your Own Feet. Wishing you a Happy New Year 2020! Happy New Year’s 2020 Have a Happy New Year’s Day Additionally, have a Great Deal of happy days ahead of this year. My Wishes for You, Great Start for Jan, Love for Feb, Peace for March, No Worries for April,” Fun for May, Joy for June to November, Happiness for December. Take a Fantastic and Lucky Year! Keep Healthy and blessed! Best Regards Linda 姬琳达珍 and Carlos Debello (LREA) LJ Gilland Real Estate Pty Ltd https://youtu.be/QjoNjAoURLI Linda Debello LREA推荐书LJ Gilland房地产 http://ljgrealestate.com.au/testimonials/ Request FREE Rental Appraisal here! "Your Local Property Management & Sales Specialists" PO BOX 19 ZILLMERE 4034 Ph: 07 3263 6085 http://ljgrealestate.com.au/competitive-commission/  http://ljgrealestate.com.au/property-management/ http://www.facebook.com/ljgrealestate