RP Data’s estimate of house and unit sales across the nation over the 2012/13 financial year shows a significant rise, clearly fuelled by the very low mortgage rate environment.
Over the 2012/13 financial year, RP Data estimates that there were 328,903 houses and 122,282 units sold across the country. Based on these figures, sales volumes over the year were 13.1% higher for houses and 6.4% higher for units.
The data indicates that at a national level the vast majority of transactions were for detached houses, at 72.9% of all sales.
Based on the sales information over the 2012/13 financial year, house sales were at their highest level since the 2009/10 financial year and unit sales were at their highest level since the 2010/11 financial year.
Despite the increase in sales over the year, the number of sales over the financial year remains -1.7% below the five year average.
At a combined capital city level, there were 203,454 houses and 91,668 units sold over the 2012/13 financial year. Capital city house sales were 14.9% higher than a year ago and unit sales were up 4.7%.
Capital city house sales accounted for 68.9% of all sales over the year.
Capital city house sales were at their highest level last financial year since the 2009/10 financial year and unit sales were their highest since 2010/11. Capital city home sales over the past year were also -1.7% lower than their five year average.
Focussing on individual capital city housing markets, you can see that the rise in home sales throughout the 2012/13 financial year has not been a balanced one.
The most encouraging result is that across each city the number of sales for both houses and units is higher than those throughout the 2011/12 financial year. Of course, with the ongoing fall in mortgage rates you would expect that there should be a pick-up in sales volumes such as that which has occurred.
Sydney – houses sales across the city accounted for 26.7% of all capital city house sales and were 11.7% higher than the 2011/12 financial year. Unit sales were just 0.8% higher than a year ago and Sydney unit sales accounted for 40.3% of all capital city unit sales over the past year.
Melbourne – had more house sales over the past year than what was recorded in Sydney and sales were 13.5% higher than a year ago. 27.3% of all capital city house sales over the year were recorded in Melbourne. Unit sales rose 2.9% year-on-year and accounted for 25.2% of all capital city unit sales.
Brisbane – house sales rose 20.9% over the year with Brisbane recording 14.8% of all capital city house sales. The lift in unit sales was more moderate at just 7.4% and unit sales across the city accounted for 13.5% of all capital city sales.
Adelaide – house sales were 3.5% higher than a year ago and unit sales lifted by 4.1%, both of which were the most moderate increases in activity of any capital city. Adelaide accounted for 9.0% of all capital city house sales and 6.3% of all unit sales.
Perth – house and unit sales across the city recorded the largest annual rise of any capital city up 25.0% and 30.3% respectively. 17.3% of all capital city house sales over the year occurred in Perth and 8.8% of all unit sales.
Hobart – is a minor capital city housing markets with house and unit sales accounting for just 1.5% and 1.0% of all capital city sales respectively in 2012/13. House sales rose by 12.2% over the year and unit sales were up 5.5%.
Darwin – house sales across the city rose by 20.9% over the year and unit sales increased by 12.0%. Darwin house sales accounted for 1.1% of all capital city sales nationally and unit sales accounted for 1.2% of all sales.
Canberra – houses accounted for 2.2% of all capital cities over the year and were 11.6% higher than a year ago. Unit sales rose by 1.2% over the year, accounting for 3.8% of all capital city unit sales.
Overall the data indicates that the housing market has experienced an increase in sales activity over the past year which is the type of response you would expect with such low mortgage rates available.
From here, we would expect further increases throughout the 2013/14 financial year as mortgage rates are anticipated to remain at low levels which should encourage even greater levels of investment in housing both from owner occupiers and investors.
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