Has the Real Estate market stabilised?

Team Veye | 28-Sep-2020 Real Estate market

When it was said by responsible authorities that maintaining the free flow of credit through the economy was critical to Australia's economic recovery plan, it was bound to have a far reaching impact on many sectors. It was further said that changes could be proposed that would remove some of the safeguards banks are required to have in place to ensure people do not enter into loans they cannot afford.

Earlier this year, when the property market was being hit by twin threats of the Coronavirus pandemic and economic slowdown, there were extreme dire predictions of property falling massively, just short of a crash.

Ever since, the outlook for Real Estate market seems to be changing fast. The banks have already revised their property forecasts. It is being suggested that there could be very little further downside.

According to leading economists, Reserve Bank of Australia is hinting that it may cut rates again if the country’s recession deepens.

While the Real Estate market is already throwing signs of heating up, Australia’s home loan lending market is further fueling it up with a number of providers offering rates below 2 percent.

CBA has explained that new lending for housing rose again in August. A recovery in lending is one factor behind its view that dwelling prices will fall only modestly over the next 6 months. And it expects dwelling prices to rise solidly in H2 21.

Growth in first home buyer enquiry on real estate sites continues. With record low interests and many first home buyer incentives from the Federal Government the market seems to be balanced. Lack of investor activity is, though, preventing this market to rise sharply.

Prices have remained resilient during the pandemic. REA Insights Weekly Demand Index, which measures high-intent buyer activity on realestate.com.au, demand is now -13.4 per cent lower than its peak but still remains up year-on-year.


Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.

veye logo

Grab Your Free Report On 5 ASX Dividend Stocks To Buy In 2024