{"id":29586,"date":"2020-12-12T16:07:30","date_gmt":"2020-12-12T03:07:30","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=29586"},"modified":"2020-12-12T16:07:30","modified_gmt":"2020-12-12T03:07:30","slug":"seven-graphs-that-show-why-its-so-hard-to-find-cheap-house-prices-right-now","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/seven-graphs-that-show-why-its-so-hard-to-find-cheap-house-prices-right-now\/","title":{"rendered":"Seven graphs that show why it\u2019s so hard to find cheap house prices right now"},"content":{"rendered":"

PHOTO: House prices barely fell this year.<\/strong><\/p>\n

Despite warnings of the biggest recession since the 1930s, Australia\u2019s house prices barely fell this year and are already rising on the back of rock-bottom interest rates and unprecedented stimulus.<\/p>\n

While the lucky country managed to come through the crisis with the economy in better shape than initially feared, many home buyers have been surprised to find that a downturn doesn\u2019t mean a discount.<\/p>\n

But why are house prices seeming to defy gravity? Here are seven graphs that explain.<\/p>\n

 <\/p>\n

1. Interest rates dropped<\/h4>\n
\"RBA
The RBA cut the cash rate. Photo: RBA<\/strong><\/em><\/figcaption><\/figure>\n

Interest rates have been slashed to rock-bottom levels this year, as the Reserve Bank tries to support the economic recovery.<\/p>\n

Although banks have not passed on the entire cut, homeowners can get fixed-rate deals as low as 1.99 per cent per annum.<\/p>\n

\u201cThe drop in interest rates has been larger than people realise,\u201d ANZ senior economist Felicity Emmett said. \u201cPeople have switched from variable to fixed so they\u2019re getting a very significant decline in interest rates.<\/p>\n

\u201cThat means that people can borrow more.\u201d<\/p>\n

\n
\n
<\/div>\n<\/div>\n<\/div>\n

Home buyers then turn up to auction with a bigger budget, bidding up prices.<\/p>\n

 <\/p>\n

2. Home lending soared<\/h4>\n
\"ABS
Home lending has jumped in recent months. Photo: ABS, October 2020<\/strong><\/em><\/figcaption><\/figure>\n

 <\/p>\n

The amount of money lent to buy homes or refinance has been rising, reaching a record high in October.<\/p>\n

Although it can still be challenging to get a loan approved, with buyers needing to prove they have a steady income and good control over their expenses, banks are willing to lend \u2013 especially to low-risk borrowers.<\/p>\n

Again, the Reserve Bank is helping. It has\u00a0offered<\/a>\u00a0up to $200 billion in cheap money to commercial banks, to help them lend to small businesses and keep mortgage interest rates down.<\/p>\n

3. The job market improved<\/h4>\n
\"ABS
The number of people with jobs dropped, but is recovering. Photo: ABS, October 2020<\/figcaption><\/figure>\n

Despite a sharp jump in unemployment when state and federal governments put the economy into hibernation to slow the spread of COVID-19, workers are starting to return to their jobs as the economy re-opens.<\/p>\n

READ MORE VIA DOMAIN<\/a><\/p>\n

MOST POPULAR<\/span><\/h3>\n