PEXA Property and Mortgage Insights report has been published covering the year to September 2020.
PEXA is “helping 20,000 families a week settle safely on their homes” the report states.
Major banks win market share
“A lending shift has occurred from non-major banks to majors for both new mortgages and refinances, with majors entering a ‘net win’ refinancing position from May 2020 onwards.”
“Refinances have grown progressively, starting with a 20 per cent year-on-year increase in January 2020 and, at the peak, reaching a 70 per cent year-on-year increase in June 2020. This increase in refinancing activity may be a consequence of both mortgage stress and mortgagees shopping around for the best deals as interest rates have fallen to record lows.”
Volume of property sales higher than last year
“Property sales settlements started the year 20 per cent higher year-on-year January 2020 but with the impact of COVID-19 restrictions, fell subsequently to levels below those of 2019. There have since been signs of a recovery following an easing of restrictions, with market growth up in September 2020.”
Since August 2020 property sales settlements nationally are higher in 2020 compared to 2019. “September was the strongest month of year-on-year growth since the pandemic was declared, with October forecast to surpass September volumes.”
“Declines in confidence and sentiment resulted in fewer new listings each month this year compared with averages in the three prior years.”
“Evidence is emerging of greater strain on commercial properties compared with residential properties, with the median sales price of commercial properties falling by 14 per cent between January and September 2020 in New South Wales while the median price of residential properties over the same period fell by 9 per cent.”
Access the report here