End of Week Property Market Update: RPData- Tim Lawless

The RP Data-Rismark Home Value Index results for July 2013 were released earlier this week. The index showed that capital city home values rose by 1.6% in July with the increases broad-based across all capital cities apart from Adelaide.

In fact Adelaide was the only capital city that did not record an increase in home values over the month with a fall of -1.5%.

Over the past 12 months, capital city home values have increased by 4.9% and every capital city except for Hobart (-0.4%) has recorded an increase in values.

Interestingly, home values in Sydney, Perth and Canberra are now back above their previous peaks and at the combined capital city level, values are just -1.3% lower than the record high recorded back in October 2010.

The Australian Bureau of Statistics (ABS) released dwelling approvals data for June 2013 this week. The data showed that over the month, dwelling approvals recorded a significant -6.9% fall however, this was largely driven by a -12.6% fall in the more volatile private sector unit approvals rather than private sector houses (-1.2%).

[sam id=34 codes=’true’] Year-on-year, dwelling approvals are -13.0% lower however, the number of approvals has been trending higher over most of the past year.

On an annualised basis, there were 157,650 dwellings approved for construction over the 2012/13 financial year which was 5.2% higher than the number over the 2011/12 financial year.

Despite the pick-up in approvals they remain at around average levels and are not responding as strongly as needed to the surging rate of population growth.

The Reserve Bank (RBA) released housing credit growth figures for June 2013 earlier this week. The data showed that over the 2012/13 financial year, housing credit has increased by 4.6% with owner occupier credit growing by 4.1% and investor credit up by a stronger 5.7%.

At the same time a year ago, total housing credit had increased by 5.0% over the year with owner occupier credit up 4.9% and investor credit growing by 5.3%.

This data supports the housing finance commitments data which shows that demand for finance from investors is growing at a much faster pace than demand for finance from owner occupiers.

 

National Auction Clearance Rates

The weighted average auction clearance rate over the past week was recorded at 65.3%, up from 64.1% the previous week. The major auction markets of Melbourne and Sydney continued to record a strong rate of successful auctions.

Melbourne’s clearance rate over the week was 68.7% across 637 auctions last week, up from 63.4% across 519 auctions the previous week.

In Sydney, auction clearance rates were recorded at 77.3% last week across 469 auctions, up from 74.9% the previous week across 422 auctions. RP Data is currently anticipating 1,241 capital city auctions over the current week.

capital city clearance rates aug 2

auction clearance rates

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Tim Lawless

About

Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au


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