Here’s what happened in the property markets this week…
The Australian Bureau of Statistics (ABS) released their Consumer Price Index (CPI) results for the March 2013 quarter earlier this week.
CPI increased by 0.4% over the quarter following a 0.2% increase over the December 2012.
The results show that inflation is currently quite low, increasing at an annualised rate of just 1.2% over the two most recent quarters.
Over the past year, annual inflation has been recorded at 2.5% which is comfortably within the Reserve Bank’s (RBA) 2% to 3% target range.
On an annual basis, inflation has been below 3% for each of the past 5 quarters, this is the first time this has occurred since March 2010.
The RBA has a preference to focus on underlying or core inflation measures which remove some of the more volatile measures, these measures are the trimmed mean and the weighted median.
Over the past year, the trimmed mean measure has increased by 2.2% and the weighted median has increased by 2.6%, both within the target range.
To read a more detailed breakdown of this week’s inflation data read this week’s rpdata Research Blog.
The monthly results of the rpdata-Rismark Home Value Index for April will be released on Wednesday next week. After combined capital city home values increased by 2.8% over the first quarter of 2013, it looks as if home values will record a dip in April. Our daily index (http://www.rpdata.com/research/daily_indices.html) shows that over the first 24 days of April, home values across the 5 largest capital cities have fallen by -0.5%.
Over the month to date home values are down -0.7% in Sydney, -0.5% in Melbourne and across the combined Brisbane/Gold Coast region, they are up 2.9% in Adelaide and have fallen by -2.1% in Perth.
As highlighted in last week’s Property Pulse, the first quarter of the year is typically the strongest performer and the second quarter is typically weaker however, the weakness seen so far this month had not been expected.
Latest National Auction Clearance Rates
Last week there were 1,433 capital city auctions, up slightly from 1,410 the previous week. The combined capital city auction clearance rate was recorded at 63.0% last week, up from 61.8over the previous week. RP Data collected results for just over 88% of all capital city auctions which took place last week.
In Melbourne, Australia’s largest auction market, the clearance rate was recorded at 66.5% last week which was steady over the week however, the number of auctions which took place rose to 743 from 626 last week.
In Sydney, the auction clearance rate increased to 71.1% last week from 67.2% over the previous week. Auction volumes across the city fell from 529 the previous week to 440 last week. Auction activity is set to increase this week, with our figures indicating that there will be 1,556 capital city auctions this week.
Advertised Stock on the Market
The number of new listings being added to the market fell by -1.5% over last week. 43,587 new listings were added to the market nationally, with 26,205 of these located in a capital city.
Although there was a fall in the number of new properties listed for sale there has been a slight increase in the total number of properties available for sale.
There were 287,910 homes advertised for sale over the past four weeks. Across the combined capital cities, there were 129,297 homes available for sale, 45% of the total stock available for sale.
New listings nationally are now -8.6% lower than they were a year ago and total listings are 2.2% higher than they were at the same time last year.