Analysts at the Australia and New Zealand Banking Group (ANZ) are of the view that the affordability is a problem for both potential home buyers and renters in Australia.
Key quotes
House prices continue to rise solidly, supported by easier access to credit and lower interest rates.
Nationwide, we expect prices to rise solidly in 2020, but we think the pace of monthly gains will moderate, helped by rising new listings. We have revised up our forecasts and now expect prices to rise around 8% nationwide through 2020.
Building approvals have fallen sharply, driven by a steep decline in high-rise apartment building approvals.
We expect activity to fall for the next two quarters, before picking up in the second half of 2020.
As house prices rise, so are concerns about affordability. First home buyer loan sizes are up 16% since the low in May. Affordability is a problem for both potential home buyers and renters.
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