The figures do not lie. The tsunami of property investors leaving the market in Victoria is getting worse. We also know first home buyers are moving back into the market. So what future impact will this have on the rental market in Victoria?
Tim Pallas has through his tax grabbing actions set Victoria up for a far more serious rental crisis in another couple of years. Pallas' actions are disgraceful, thoughtless and dare I say it uncaring unless you think about credit ratings.
Here are some excerpts from an article publiished in the Herald Sun today.
******************************************************************************** One million Victorian households found to be in mortgage or rent stress in August: Digital Finance Analytics
Melbourne is home to some of the most financially stressed areas in the country, as more than one million households were pushed to their limit in August.
Nathan Mawby
3 min read
September 5, 2024 - 5:00AM
More than a million Victorian households are in either mortgage or rental stress, but hardest hit areas are showing signs that they have survived the interest rate hiking cycle.
Digital Finance Analytics’ August report on Aussies financial stress has revealed an estimated 511,000 households in Victoria with a mortgage and which have more money going out than coming in at the moment, up from 505,000 in April this year.
There were another 571,800 rented homes where the occupants were in the same boat, also up from 552,000 earlier in the year, with Melbourne’s CBD the nation’s top spot for rental stress.
Ray White Victoria chief executive Domenic Belfiore said if there were approximately three million households across the state, having a third of that number in stress was a very high figure — but noted “we aren’t seeing fire sales”.
Ray White is Victoria’s biggest real estate group and present in almost every corner of the city, with Mr Belfiore adding that his firm’s number of listings were 18.5 per cent higher this year than at the same time in 2023.
However, with investor-owned property listing numbers accounting for 36 per cent of their listings today he said this could be concerning for rents in the future.
“So if there’s rental stress now, because of the rising rents, what will they look like in a few years time?”
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Here are some more excerpts from a second article published today
********************* More home owners fail to sell their properties as the market slows ByElizabeth Redman
September 5, 2024 — 5.00am
The number of old listings – on the market for more than 180 days – was 14.9 per cent higher nationally in August than in the same month last year, SQM Research figures show.
In Melbourne, old listings rose 9.9 per cent, while in Sydney, they rose by 5 per cent compared to a year earlier.
It comes as Melbourne home values have been edging lower and Sydney value growth has been moderating, as higher for longer interest rates reduce how much money home buyers can borrow. Melbourne’s market has also been affected by higher land taxes on secondary properties.
In Brisbane, Perth and Adelaide, where values have been rising faster, the number of old listings fell compared to a year ago as buyers competed harder for available properties.
