Recovery in housing values accelerated in August.

Have dwelling values finally found a floor in July?

Overall market sentiment lifted 9 points to +7 in Q2. It rose in all states (bar SA/NT), and was highest in VIC & NSW.

Current market sentiment among property professionals still negative but lifted in Q2 post the Federal election. Future expectations also improved sharply, reflecting a stronger outlook for prices and rents.

Lower mortgage rates and improved sentiment could already having a flow-on effect for housing market conditions.

According to a new report by CSIRO, Australia will have well-connected, affordable capital and satellite cities that offer equal access to quality jobs, lifestyle amenities, education and health services if three levers are implemented.

Although dwelling values fell in May, the pace of decline continued to ease; a trend that has been evident since the beginning of 2019.

We invited Treasury representatives from four non-bank financial institutions and one UK-based asset manager – Liberty Financial, La Trobe Financial and Resimac Group in Australia and Kensington Group and TwentyFour Asset Management in the UK – to an International Round Table to discuss the opportunities and challenges in their respective mortgage and securitisation sectors.

Australian dwelling values fell half a percent last month as the pace of home value declines continued to ease.

Overall market sentiment (measured by NAB’s Commercial Property Index) fell 11 points to -2 in Q1 2019 – its first negative read in over 4 years.

Deterioration in conditions in most states, with current momentum negative. Household sector weakness evident, investment still ok (outside mining), while agri. facing easing prices and needs rain. Housing sector downturn, population growth centred on the eastern states, agricultural prices easing.

Australia recently experienced one of its largest booms on record in residential investment, driven by new construction as renovations to existing homes inexplicably languished. The Weekly analyses.

NAB’s view is that prices will decline further over the next year or so – led by further declines in Sydney and Melbourne. We also see the adjustment continuing in an orderly manner, with prices remaining well up on 5 years ago.

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