April Property Snapshot Infographic

Relatively low consumer confidence, stricter serviceability requirements for borrowers, tighter lending conditions for investors, affordability challenges and low rental yields are all factors that may contribute to the moderation in housing market conditions over 2015.

These factors could be somewhat offset by the low returns from risk free assets and interest rates for residential mortgages expected to reduce even further over the coming months.

The ideal outcome for the Reserve Bank under the current and potentially lower interest rate setting would be that housing market conditions continue to moderate back to more sustainable levels, but housing demand remains strong enough to keep dwelling construction at the current high levels and new home sales relatively high.

To date we have seen a moderation in growth however, the rebound of value growth in Sydney is no doubt likely to be creating some headaches for both the RBA and APRA.

Source: myrp.com.au