The Australian Bureau of Statistics (ABS) released its Consumer Price Index (CPI) results for the June 2013 quarter earlier this week.
CPI measures the level of price inflation across the economy and over the quarter, headline CPI rose by 0.4%. The Reserve Bank’s preferred underlying measures of inflation, the trimmed mean and weighted median, rose by 0.5% and 0.7% respectively over the quarter.
The RBA has an annual inflation target range of 2% to 3% over the cycle, headline CPI has increased by 2.4% over the 12 months to June 2013. The RBA’s preferred inflation measures have increased by 2.2% (trimmed mean) and 2.6% (weighted median) over the past year.
The current level of inflation provides the RBA with scope to cut official interest rates further if they deem it necessary to do so.
The CPI data shows that over the past 12 months, the greatest increase in costs across the groups was recorded in health (6.6%), education (5.7%), housing (5.3%) and alcohol and tobacco (4.0%).
On the other hand, costs associated with transport (-0.5%), clothing and footwear (-0.3%) and recreation and culture (-0.1%) all fell over the past year.
Looking specifically at the housing group, it can be seen that costs have increased by 5.3% over the past year. Across the housing sub-groups the largest increases over the past year have been recorded for electricity (17.2%), gas and other [sam id=31 codes=’true’]household fuels (15.3%), utilities (13.3%) and property rates and charges (5.8%).
All other costs have increased at a rate below the 5.3% increase in housing costs with maintenance and repair of the dwelling (2.4%), water and sewerage (2.6%), rents (3.4%) and new dwelling purchase by owner occupiers (3.6%) recording the smallest increases over the year.
The RP Data-Rismark Home Value Index results for July 2013 are released next week. Based on the daily index results, values are going to record strong growth over the month.
Home values across the five major capital cities have increased by 1.3% over the first 24 days of July and are now 4.3% higher throughout the year to date. So far this month, home values have increased across each of the major capital city markets except for Adelaide.
National Auction Clearance Rates
The weighted average auction clearance rate over the past week was recorded at 64.1%, down from 67.7% the previous week. The major auction markets of Melbourne and Sydney continued to record a strong rate of successful auctions.
Melbourne’s clearance rate over the week was 63.4% across 519 auctions, down from 67.9% over the previous week across 426 auctions.
In Sydney, auction clearance rates were recorded at 74.9% last week across 422 auctions, down from 77.4% across 378 auctions the previous week. RP Data is currently anticipating 1,339 capital city auctions over the current week.
Advertised Stock on the Market
The number of listings fell slightly last week across the Australian housing market. Nationally, total listings are -11.0% lower than at the same time last year with 243,218 properties currently advertised for sale.
Across the capital cities there are 104,944 properties listed for sale which is -17.5% lower than at the same time last year.
The number of newly advertised properties is quite low due to seasonal factors and they are lower than at the same time last year at both a national and capital city level.
Nationally, there were -5.0% fewer new listings with a total of 37,102 listings. Across the combined capital cities, listings were -2.6% lower than at the same time a year ago.
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