CoreLogic RP Data released results for capital city housing market performance to the end of the financial year this week.
The indices showed that capital city dwelling values were 9.8% higher over the financial year, ranging from a 16.2% gain in Sydney through to a 2.9% decline in Darwin.
The complete overview of housing market conditions is available in the media release located here.
Private sector credit data for May 2015 was released by the Reserve Bank (RBA) recently
The data showed that over the month credit rose by 0.5% and over the year it has increased by 6.2%.
Looking at the components of this growth; housing credit rose by 7.2% over the year, personal credit increased by 0.8% and business credit was 5.2% higher.
The data shows that residential property is largely fuelling the growth in credit, furthermore it accounts for a record high 61.1% of all outstanding credit while business credit is at a record low 33.0%.
Looking at housing credit, owner occupier credit rose by 0.4% in May and by 5.7% over the 12 months to May. Investor credit advanced by a greater 0.8% over the month and by 10.4% over the 12 months.
APRA’s limit on investment credit growth of 10%pa has been widely publicised and the data shows investor credit is growing at a rate slightly above this level.
It should be noted that the annual increase in investor credit has remained at 10.4% for three consecutive months, perhaps we are seeing early signs of lending criteria changes impacting on the pace of investor credit growth.
Most of the publicised changes to lending policies started taking effect in May so it will be interesting to see over the coming months what, if any, impact this has on the rate of housing credit growth.
Building approvals data from May 2015 was released recently by the Australian Bureau of Statistics (ABS)
The data showed that in May 2015 there were 19,414 dwellings approved for construction across the country which was just -2.9% lower than the record high monthly number of approvals.
Dwelling approvals increased by 2.4% over the month and were 17.6% higher year-on-year.
Most of the new housing supply is being approved in higher density sector; in May 2015 there were 9,375 houses and 10,039 units approved for construction, it was only the 4th time on record more units were approved over the month than houses.
House approvals fell by -8.5% over the month and were -2.8% lower year-on-year.
Unit approvals increased by 15.2% over the month and were 46.2% higher year–on-year.
Over the past 12 months there has been a record high 218,442 dwellings approved for construction, we’ve also seen a record high 47.0% of all approvals for units as opposed to houses.
The higher supply levels in the unit sector is likely to be a primary reason why unit values are increasing at a slower pace than house values.
CoreLogic RP Data was tracking 2,249 auctions over the past week, which was a slight reduction from the 2,268 auctions the previous week.
The weighted average clearance rate across the capital cities was 76.9%; the 16th consecutive week where the combined capitals clearance rate has been above 75%.
The national clearance rate fell from 77.3% the previous week.
The largest auction market, Melbourne, saw 1,007 auctions held last week with a clearance rate of 78.5%.
Both auction volumes and clearance rates were lower than the 1,084 auctions and 79.3% clearance rate the previous week.
In Sydney there were 896 auctions with a clearance rate of 82.0% last week. Auction volumes rose over the week while the clearance rate was its lowest in 17 weeks.
Sydney auction clearance rates have remained above 80% each week since the Reserve Bank cut official interest rates by 25 basis points at the start of February 2015.
The number of new homes being advertised for sale has fallen over the past week along with a rise in total listings
Despite the increase, total listings nationally are -3.9% lower than the number from a year ago while capital city listings are -6.5% lower.
Over the past four weeks there have been 42,842 newly advertised properties added to the market which is 11.3% more than at the same time one year ago.
A similar trend can be seen across the capital cities where 24,981 new listings hit the market over the past four weeks which is 5.5% higher than at the same time last year.
The number of new listings is higher currently compared to the same time in 2014 across all cities except Adelaide, Perth and Darwin.
Meanwhile, although total capital city stock is lower than a year ago, it is being fuelled by a significant decline in listings compared to a year ago in Sydney (-19.1%) and to a lesser degree Canberra Melbourne (-14.6%), And Canberra (-13.7%).
Perth (+14.8%) and Darwin (+28.8%) remain the only two capital cities in which total listings are higher than they were a year ago.
Total listings in Sydney are still lower than in each of Melbourne, Brisbane and Perth.