2019 was an eventful year in the property world

2019 Was an Eventful Year in the Property World

Mark Stevenson, Managing Director at Bell Partners Finance (now Evolve Lending & Finance) wrote his end-of-year Broking Breakdown column for The Western Weekender reflecting on a remarkable 12 months in Australian property and what it meant for borrowers heading into 2020.

The year began against the backdrop of what turned out to be the shortest property market downturn on record, with Sydney rebounding to record its largest single month of price growth in over 30 years. The Reserve Bank, after 30 consecutive meetings with rates on hold, made up for lost time by cutting three times over five months, bringing the official cash rate to a historic low of 0.75 per cent and pushing home loan rates into territory not seen before, with many products beginning with a two.

On the regulatory front, APRA and ASIC had responded to the Banking Royal Commission findings with action on misconduct while simultaneously relaxing certain lending guidelines. The most significant change was the removal of the rule requiring lenders to assess borrowers against a minimum repayment rate of seven per cent. With assessment rates dropping to as low as 5.25 per cent, the average borrower gained an additional 10 to 15 per cent in borrowing capacity.

Against a backdrop of flat wages, growing underemployment and subdued retail spending, Mark remained constructive on the outlook. His view was that ongoing strong migration into Sydney and Melbourne, combined with improved credit availability and a more positive market sentiment, would support continued property performance heading into 2020.

The column closed with a look forward from one of the region’s most active brokers, grounded in a genuine understanding of the economic forces shaping housing affordability and lending conditions.

Looking to make the most of the lending landscape in the year ahead? Contact Evolve Lending & Finance for advice tailored to your situation.