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 21 April 2024

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  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

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  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.37% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.09% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).

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  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

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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. You can change the loan amount and term in the input boxes at the top of this table. 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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