APRA steps in
According to the ABC, APRA has now increased the mortgage loan buffer by a few percentage points in some effort of correcting the rampant rise in values over the last few months without hopefully upsetting the plans of too many first homebuyers.
Analysis by the Sydney Morning Herald of what the APRA tightening of loan requirements might mean, says that a household would need an income of $200,000 to get a foot in the door for a $1.5m median Sydney house, and that more than 500 suburbs would require a minimum of $100 000 income to buy a median home for their particular area.
Having said that, the Australian property market reached a new milestone valuation of $9.1 trillion in the middle of the month. According to Core Logic this is after having already set a new milestone in March of $8 trillion.
In fact, the question has arisen as to whether home ownership has currently become so expensive that it may be on its way to becoming hereditary. This is the suggestion by Peter Martin writing for domain. In relation, Domain reports that settlement variations such as extending settlement or leasebacks are on the rise as new property stock seems to be dwindling.