It has been a few months since I sent through an update, and again plenty has changed during that time!

It isn’t quite time to sit back and reflect on the year that was, because there are a huge few weeks ahead before the break. With the recent increase in market activity this has resulted in many lenders struggling to keep up with volumes and assessment times blowing out (in some instances for what usually takes 2 days to 10 business days!). For those looking to settle before the end of year we’ve just hit the critical timeline for new applications for most (but not all) lenders.

From a lending perspective things are constantly changing. Some lenders are implementing changes that make things harder, for instance by shading rental income by 30% instead of 20%. Whereas some lenders are making things easier, for instance by removing LVR restrictions on high density apartments.

From a market perspective, the latest data to end of November shows again positive conditions with the market continuing to grow. Sydney for the month of November +2.7% taking the latest quarter to +6.2% and the last 12 months +1.6%. We are still 8% down from the previous peak of the market in Sydney, and in my opinion that is where prices will return to. This would make it the “correction of the correction” that we had in 2018, and a huge surprise for most.

We’re anticipating 2020 will be another big year full of surprises. Will the market continue to grow? What will happen to interest rates? Will we see the RBA cut to 0% or will they introduce QE?

We do know for 2020 one big thing that is coming January 1st is the First Home Buyer Deposit Scheme. Only a month away and still not all details are released around how it’ll work, but we know that NAB will be eligible as one of the lenders that can offer it. More details in the link:

https://www.nhfic.gov.au/what-we-do/fhlds/

We hope everyone has the opportunity to take some time off over the end of the year with friends and family, and look forward to keeping in contact in 2020!

 

 

 

Source: Corelogic