Growth in mining exports should support a housing recovery in Perth, Darwin: Moody's
Australia's robust housing market helped the economy weather the effects from the transition away from mining, according to the CoreLogic-Moody’s Analytics Australian Home Value Index Forecast, 2017Q1.
The report said growth in mining exports should support a housing recovery in Perth and Darwin with potential apartment oversupply in Sydney and Melbourne.
"Sydney and Melbourne are leading the market thanks to their stable local economies, although a large number of apartments completed in those cities could create oversupply issues," it said.
"Housing market strength is prompting the RBA, which lowered the overnight cash rate by 50 basis points in 2016, to keep rates steady.
Although the official monetary policy rate will remain on hold, this does not mean that mortgage rates will also stay low.
"The major banks have increased lending rates out of step with the central bank. Some of this action is being driven by regulatory tightening and will encourage a slowdown in market activity this year and next."
