The announcement of the HomeBuilder stimulus from the federal government in early June has been met with a mixture of excitement and criticism. The scheme grants $25,000 dollars for new home builds and renovations where: The recipient is an owner occupier; The recipient earns no more than $125,000 per annum as a single applicant or…
The HomeBuilder scheme announced in early June is intended to boost activity in the construction sector. Dwelling construction is expected to see a lagged decline in activity off the back of COVID-19, as the recently recovering trend in dwelling approvals began to slip in April, led by a decline in unit approvals. However, the $25,000…
COVID-19 has brought about downside risks for the economy and housing market. A 0.3% decline in March GDP confirmed a technical recession is underway in Australia, total wages paid fell 5.4%between mid-March and early May, and Australian dwelling market values saw the first month-on-month decline since June 2019. But one surprising sign of stabilising emerged…
The start of the Perth dwelling market recovery comes at an unfortunate time. In early 2020, the Perth dwelling market had four consecutive months of dwelling value increases, which is the longest stretch of capital growth since 2014. The Perth dwelling market has a long road to recovery. By the end of April, the house…
The week ending 10th of May delivered a final auction clearance rate of 59.9%. This has jumped from a clearance rate of 47.5% in the previous week and a recent low of just 30.2% only four weeks ago. It is the highest clearance rate result since the week ending March 15, before the strictest social…
On the 25th of March, real estate agents were temporarily banned from hosting open property inspections and on-site auctions. The ban resulted in changes to the auction process, which went from on-site to online. These changes are reflected in some startling data points in the auction results. Below is a summary of typical auction outcomes…
COVID-19 is having varied impacts on residential property, but arguably the biggest impact could be in the rental space. Prior to COVID-19, the Australian rental market was already weak. Now, new challenges are here. As Australian borders remain closed to tourists, and government policies restrict short-term rental arrangements, Airbnb rentals are converting to long-term rental…
Rent values increased by 0.3% nationally over the month of March. Despite rental value increases, this has decelerated from a recent peak growth rate of 0.5% in January 2020. Prior to this March slowdown, the CoreLogic hedonic rental index had seen an upswing in values since September 2019. This occurred against slight moderations in new…
So far, the COVID-19 downturn has had a dramatic impact on agent activity and listings volumes in residential real estate. But the value of dwellings has been relatively resilient. It is still likely that property values will fall amid the downturn. But the decline in momentum across property values has been relatively mild relative to…
It has been three weeks since the government shutdown non-essential services, placed a temporary ban on auctions and open inspections, and essentially halted the economy in response to COVID-19. From a values perspective, the CoreLogic hedonic index has been showing a loss of momentum in housing value growth rates since mid-March. Data through to mid-April…
