Australian housing market entering an uncertain phase, says Westpac

calculating how much money you can save when refinancing your loan

The housing market has taken a major hit in the last few months but still holds up compared to last year’s major lockdown, says the Westpac Housing Pulse report. 

The housing boom Australia has experienced since mid-last year has seen a major rise in prices. However, it is expected to lose its momentum due to the COVID-19 delta variant disruptions, says the report. The market is likely to reaccelerate once again when things reopen.

“Markets are entering very tricky territory as major virus disruptions combined with an extraordinary boom that is starting to run into affordability constraints,” says Westpac’s senior economist Matthew Hassan.

“We expect the situation to see a temporary loss of momentum rather than a correction in the most heavily impacted areas, and a rapid snap-back once restrictions ease.”

Delta’s impact on housing

Since the outbreak of the new COVID-19 variant, the NSW and VIC government have taken hits to the economy. The report forecasts that with the rise in vaccination rates and the easing of restrictions that the states should rebound into the first quarter of 2022.

Even with lockdown restrictions in NSW, Sydney has seen 500 properties going to auction each week and 150-200 sold before going to online auctions. With stay-at-home orders and several jobs on a standstill, Sydneysiders are still applying for home loans and purchasing new properties.

States and territories who haven’t suffered long lockdowns have seen their housing market continue to grow thanks to federal government home ownership schemes.

If you are considering buying a home in the near future? Check out Mozo’s home loan comparison chart to find the perfect home loan for you.

Home loan comparisons on Mozo - last updated 19 January 2022

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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