CBA Tips Housing Growth

The Commonwealth Bank of Australia is forecasting a surge in house prices over the next two years.

The latest figures to come from the bank indicate as much as 16 per cent for housing prices alongside a unit price growth of nine per cent.

This comes as lending rates have lifted sharply, signalling a housing market is on the “cusp of a boom”.

“The increase in new lending is now feeding into higher prices for bricks and mortar,” says CBA economist Gareth Aird.

In the Bank’s most recent economics issues report, released today, the CBA reported that the predicted boom was to come off the back of record low interest rates and a labour market that is set to rebound sharply.

This, combined with rental yields that arrived well above the borrowing rates means that property markets will, in theory, rise.

“The CBA is reporting positive momentum is building within the property market and “as the market firms, would-be buyers are more confident to purchase and this brings other buyers into the market,” adds Aird.

And although the news is positive for homeowners, it is less so for unit-owners, with a 7 per cent growth disparity between houses and apartments.

A Mid-Century Modern home in Carmel, California, hit the market on Friday for just the third time in 70 years with a listing price of $4.25 million.

Located in the community of Carmel Highlands, the house is just steps from the coastline and comes with private beach access, according to the listing with Tim Allen of Coldwell Banker Realty in Northern California. Allen was not immediately available for comment.

The property last changed hands in 2010 when Hollywood screenwriter Richard Outten bought it for $990,000, public records show. Outten penned the screenplays for the 1992 movie “Pet Sematary Two” and the 1987 film “Lionheart,” and created the story for the 2012 “Journey to the Center of the Earth” sequel, “Journey 2: The Mysterious Island.” He was not immediately available for comment.

Built in 1953, the home’s mid-century charm has been preserved over the years while still being updated for modern living. Interior details include wood paneling, exposed-brick walls and beamed ceilings.

The single-level house has 1,785 square feet, which includes three bedrooms and two full bathrooms. Though not directly on the water, large windows flanking the adobe-brick, wood-burning fireplace look out at the ocean.

Sliding glass doors create a seamless flow between indoor and outdoor living. Outside, there’s a large patio surrounded by lush landscaping, and there are also meandering paths through sustainable succulent gardens, according to the listing.

In addition to its close proximity to the beach, the home is a 10-minute walk from downtown Carmel-by-the-Sea.

As of July, the median list price in Carmel is $3.1 million, up 8% from last year, even as active listings have increased 50% year over year, according to data from Realtor.com.

With as much as 16 per cent growth predicted.

Owned by Richard Outten, who’s penned screenplays for films including “Pet Sematary Two” and “Lionheart,” this is only the third time the home has been on the market