Owner-occupiers are filling the gap left by investors in the property market and house prices on the eastern seaboard will continue to rise, says Mortgage Choice chief executive John Flavell.
Despite a slowdown in investor lending, residential loan approvals remain steadfast at $33 billion on a monthly basis, says ABS data.
Flavell also believes a number of lenders have over-reached in their repricing of interest-only products as a result of APRA’s crackdown on investor lending and the pendulum would “swing back the other way” in a matter of weeks.
Flavell says most lenders had a comfortable margin between what they were lending and breaching the cap and may drop their rates.
“The consensus view is that house prices across Brisbane, Sydney and Melbourne will grow 4-5% on an annual basis over the next 12-24 months,” he says.
By Terry Ryder – Australia’s Leading Independent Property Researcher