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Tuesday, 28 May 2019

Rebound is on

Prices rising

With the blindingly obvious caveat that an index doesn't denote anything meaningful for individual properties, metropolitan housing prices are now rising again. 

Sydney and Melbourne home values both rose over the week for the first time since all the way back in 2017, with a 0.3 per cent gain for Sydney, and a marginal increase in Melbourne. 

Commonwealth Bank CEO Matt Comyn reported the largest volume of loan applications in six months this week, now that the looming threat of wholesale changes to taxation has been extinguished. 

Whether or not those loans are approved on a timely basis...let's see. 

The bottom's been 'n' gone in the established housing market, but new dwelling markets still have a long way to clear. 

It was interesting to note during the downturn phase that all those old real estate clich├ęs about there 'always' being a level of competition for A-grade stock did to a large extent hold true.

In saying that, some investors still got battered by paying wildly inflated prices during the frenzied peak, or through overcapitalising.