The RP Data-Rismark Home Value Index results for June 2014 were released earlier this week. The data showed that combined capital city home values rose by 1.4% over the month, partially reversing the -1.9% fall in values in May.
Over the 2013/14 financial year, combined capital city home values increased by 10.1% which was the greatest rise in values over a financial year since they rose by 12.3% over the 2009/10 financial year.
Although values continue to trend higher, they fell by -0.2% over the June 2014 quarter which is much lower than the recent quarterly peak growth rate of 4.0% over the three months to August 2013.
Overall the data suggests that values are continuing to trend higher, albeit at a much more moderate pace than they had been throughout the second half of 2013.
The Reserve Bank (RBA) released data on housing credit for May 2014 which is covered in greater depth within our weekly Property Pulse.
The data showed that over the month of May 2014 housing credit grew by 0.5% with owner occupier housing credit up 0.4% and investor housing credit 0.8% higher.[sam id=37 codes=’true’]
Over the year, housing credit has increased by 6.2% with a 5.2% rise in owner occupier housing credit and an 8.3% rise in investor housing credit.
The RBA also held their monthly board meeting earlier this week at which they decided to keep official interest rates on hold at 2.5%. It was the eleventh straight month that there was no change to official interest rates. The statement following the meeting indicated that interest rates are likely to remain on hold over the coming months.
The ANZ-Roy Morgan Weekly Consumer Confidence measure was effectively unchanged over the week, down 0.3% over the week ending 29 June 2014.
Confidence is higher than it was a month ago however, at a reading of 105.4 points it remains well below its long-term average of 113.1 points. Confidence has failed to significantly rebound following the initial budget leaks which caused a significant fall in confidence.
Weekly Clearance Rates
Auction clearance rates increased over the week with the capital city weighted average clearance rate recorded at 66.6%, rising from 65.4% over the previous week.
There were 1,991 auctions held over the week compared with 1,572 over the same week a year prior however, auction numbers were slightly lower than the 2,040 the previous week.
RP Data collected 86% of all auction records. The major auction markets of Sydney and Melbourne continued to record healthy auction results. Sydney’s clearance rate was 71.1% across 864 reported auctions, the city’s highest auction clearance rate in four weeks.
Melbourne’s auction market recorded a clearance rate of 68.3% across 811 collected auction results. The clearance rate in Melbourne last week was the lowest in 3 weeks however, the number of auctions is significantly higher than the 719 auctions over the same week last year.
Weekly Advertised Listings
Over the four weeks to 29 June, there were 36,622 newly advertised properties listed for sale nationally. New listing numbers have continued to trend lower, which likely to be mostly a seasonal phenomenon.
Nationally, new listings have moved to be -6.2% lower than a year ago, while across the combined capital cities new stock being added to the market is v-2.2 lower than at the same time last year.
There are currently 242,219 properties listed for sale across the country. Total listings at a national level were -2.4% lower compared with the same time last year. Across the combined capital cities, total listings remain -7.0% lower than a year ago, highlighting that total stock levels have reduced.