Here’s this week’s property market wrap…
The Australian Bureau of Statistics (ABS) released the National Accounts for the September quarter earlier this week.
The data showed that over the quarter gross domestic product (GDP) increased by 0.3% over the September quarter and was 2.7% higher year-on-year.
On a per capita basis, GDP was down -0.1% over the quarter and up just 0.9% over the past year.
With population growth slowing, GDP per capita is likely to also slow further.
Looking at incomes, we already appear to be in recessionary conditions with both gross domestic income and net disposable income having fallen for consecutive quarters.
The household savings ratio is also trending lower, down from 9.9% a year ago to 9.3% in September which is its lowest level since June 2010.
Real household disposable incomes have increased by a miserly 0.8% over the past year.
The ABS also released building approvals data for October 2014 earlier this week. Over the month there were 17,062 house and units approved for construction.
Approvals fell by -0.3% over the month for houses and the more volatile unit series increased by 30.4%.
Although the 17,062 dwelling approvals is high it is still -3.7% lower than its recent peak in January 2014.
Over the past 12 months there have been 197,529 houses and units approved for construction with the number of approvals remaining at their highest levels in more than 20 years.
The CoreLogic RP Data Home Value Index was released on Monday (see results here) and it showed that in November 2014 combined capital city home values fell by -0.3%.
Over the past three month combined capital city home values have increased by 0.8% and over the past year home values have increased by 8.5%.
All signs indicate that the rate of home value growth is now slowing after peaking at an annual rate of 11.5% earlier this year in April.
In all cities except Hobart the annual rate of home value growth is now lower than it was at its most recent peak.
Weekly Clearance Rates
CoreLogic RP Data recorded 3,908 auctions results across last week which accounted for 83% of all auctions held.
The weighted average auction clearance rate remained below the 70% mark for the ninth week running, recorded at 63.7%.
At the same time last year the weighted average clearance rate was slightly higher at 66.9%.
Last week CoreLogic RP Data was monitoring 3,908 auctions across the capital cities, which was 13%, higher than a year ago but and 18% higher than the previous week.
The largest auction markets saw clearance rates fall over the week. Sydney’s auction market saw a success rate of 70.6% across 1,631 auctions, which was lower than the 71.8% clearance rate the previous week and Melbourne recorded a clearance rate of 63.0% across 1,635 auctions, which was the cities lowest clearance rate in 25 weeks.
Capital city auction clearance rates
Week ending November 30, 2014
Weekly Advertised Listings
Over the four weeks to the 30th of November, there were 50,892 newly advertised properties added the national market which was lower than over the previous week.
New listing numbers are lower than at the same time a year ago (-1.5%) nationally, but across the capital cities vendors seem to be more confident, with the number of newly advertised properties up 0.4% compared with last year.
The largest rise in newly advertised stock numbers continues to be seen in Brisbane, where new listings are 8.1% higher than a year ago, and in Adelaide where new listing numbers are 3.9% higher.
There has been a reduction in new listing numbers compared with a year ago in Sydney (-0.7%), Melbourne (-3.0%), Hobart (-2.7%), Darwin (-7.7%) and Canberra (-9.2%).
Total advertised stock levels have been trending higher recently and are at their highest level since the middle of December last year.
Nationally there are 256,48 homes being advertised for sale (-1.2% lower than a year ago) and across the capital cities there are 112,785 listings (-2.4% compared with last year).