01 Mar 2021

NAB housing market commentary

Commentary on CoreLogic and ABS data released today is below. 

Quotes attributable to NAB Executive, Home Ownership, Andy Kerr:

“Today’s data show the housing market has quickly shrugged off the challenges of 2020 despite the ongoing COVID-19 impact.

“At NAB, home lending applications for January were stronger than we have seen for five years. We expect February’s data will show another multi-year high in applications.

“Headwinds persist from slowing population growth and slack in the labour market as the pandemic continues to affect several industries.

“However, record low interest rates and strong government support measures have proven the backbone of the recent housing recovery.

“We expect the low rates to continue to support prices, particularly while there is strong job creation.

“Given this backdrop, we are forecasting house price growth of 10 per cent in capital cities this year. Apartment prices are also likely to rise, but at a slower pace, particularly in Sydney and Melbourne.

“We anticipate house price growth will remain very strong into 2022, before normalising closer to income growth in 2023.”

Additional information:

  • NAB applications for the week commencing 15/2 were the highest of any week since March 2017.
  • NAB last week cut several fixed home loan rates, with reductions of up to 55 basis points.

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