End of Week Property Market Update: RPData

The April results of the rpdata-Rismark Home Value Index were released earlier this week and they showed capital city dwelling values dipped by half a percent over the last month.

Across the individual capital cities, value falls were broad based with only Adelaide (2.8%) and Darwin (0.2%) recording an increase in home values over the month.

Despite the monthly fall in home values, they have risen across each capital city over the year to date and across the combined capital cities dwelling values are 2.7% higher year on year.

Most other market indicators remain positive which indicates the housing market is likely to continue along a recovery trajectory in trend terms.

Private sector housing credit has continued to grow at an extremely contained level throughout March.

Data released by the Reserve Bank (RBA) earlier this week showed that private sector housing credit grew by 0.4% in March 2013 and has increased by 4.4% year on year which indicates annual growth remains at an historic low level.

Credit for the purposes of owner occupier housing increased by 3.9% over the year, remaining at a record low, while credit for investment housing purposes increased by 5.4% over the year.

The figures show that despite a recent pick-up in housing finance commitments the amount of outstanding credit is not expanding as quickly. In recent commentary, the RBA has highlighted that this is due to the fact the home owners are paying off their mortgages quicker and leaving extra funds sitting in their offset accounts.

The Australian Tax Office (ATO) released taxation statistics for the 2010/11 financial year earlier this week. The data showed that of the 12.64 million l persons that lodged a tax return, 1.81 million claimed a rental income indicating they were owners of investment property.

These figures suggest that 14.3% of those lodging a tax return own an investment property. Across all investment properties, each individual was claiming average losses of $83.50 each week. Of the 1.81 million investment property owners, only 597,577 or 33% were making a profit on their rental property. Of those reporting a loss, the average loss was $210.50 each week.


Latest National Auction Clearance Rates

Last week there were 1,666 capital city auctions, up from 1,433 over the previous week.

The combined capital city auction clearance rate was recorded at 64.3% last week, up from 63.0% over the previous week.

RP Data collected results for more than 89% of all capital city auctions which took place last week. In Melbourne, Australia’s largest auction market, the clearance rate was recorded at 68.1% last week, up from 66.5% the previous week with 845 auctions which was up from 743 the previous week.

In Sydney, the auction clearance rate fell from 71.1% the previous week to 70.6% last week. Auction volumes across the city increased to 517 last week from 440 the previous week.

Auction activity is set to ease slightly this week, with our figures indicating that there will be 1,593 capital city auctions this week.

Advertised Stock on the Market

The number of new listings being added to the market fell by -6.9% over last week. 40,562 new listings were added to the market nationally, with 25,238 of these located in a capital city.

With new listings falling over successive weeks there was also a fall in the total number of properties available for sale.

There were 281,335 homes advertised for sale over the past four weeks. Across the combined capital cities, there were 126,104 homes available for sale, 45% of the total stock available for sale.

New listings nationally are now -14.2% lower than they were a year ago and total listings are -2.1% lower than they were at the same time last year.



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Tim Lawless


Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au

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