The May 2013 results of the rpdata-Rismark Home Value Index will be released next Monday and the results will show back-to-back monthly declines in capital city home values. Our daily index which tracks the performance of the country’s five major capital cities has shown that values have fallen by -1.1% over the first 29 days of May.
Across each of the major cities except for Perth (+0.8%) home values have declined over the month with values down -1.0% in Sydney, -1.8% in Melbourne, -0.9% across the combined Brisbane and Gold Coast region and -2.3% in Adelaide.
With values likely to fall over successive months, home values across the major capital cities have now increased by just 1.1% so far in 2013.
The rpdata-Nine Rewards Consumer Housing Market Sentiment Survey for May 2013 was released earlier this week. The results of the survey showed that 80% of survey respondents felt that now was a good time to buy a property or home, up from 76% six months ago. Despite a majority feeling it was a good time to buy, only 37% felt it was a good time to sell, up from 29% six months ago.
52% of respondents felt home values would be stable over the next six months with 41% anticipating a rise in values. Over the coming year, 50% of respondents anticipated home values to rise with 41% believing they will remain stable.
For rents, 55% anticipate further increases over the next six months and 61% predict rises over the year. This is compared to 3% anticipating rental falls over the next six months and 4% predicting a fall over the year.
The Housing Industry Association (HIA) released their New Home Sales Report for April 2013 earlier this week. The report showed a continuation of the recovery trend which has been evident since late 2012. According to the report, new home sales rose by 3.9% in April taking the level of activity to levels not seen in over a year.
Over the three months to April 2013, new home sales are 3.3% higher than the previous three month period and are 4.9% higher than the corresponding three month period a year ago. The rebound over the year has been driven by an increase in new unit sales (51.7%) rather than new house sales (-1.1%).
Latest National Auction Clearance Rates
Last week there were 1,687 capital city auctions, up from 1,520 the previous week. The combined capital city auction clearance rate was recorded at 67.1%, slightly down from 67.3% over the previous week. rpdata collected results for more than 89% of all capital city auctions which took place last week.
Auction clearance rates have now been above 60% for eight consecutive weeks. In Melbourne, Australia’s largest auction market, the clearance rate was recorded at 69.2% last week, down from 71.9% week, the first time clearance rates have been below 70% in four weeks.
Across Melbourne, the number of auctions which took place last week rose to 823 from 738 the previous week. In Sydney, the auction clearance rate fell to 71.1% last week from 72.1% over the previous week.
Auction volumes across the city increased from 516 over the previous week to 598 last week. Auction activity is set to increase this week, with our figures indicating that there will be 1,719 capital city auctions this week.
Advertised Stock on the Market
The number of new listings being added to the market increased by 2.4% over last week. 43,470 new listings were added to the market nationally over the past 4 week, with 26,390 of these located in a capital city.
With the number of new listings increasing over the week, there was also an increase in the number of total listings. There were 285,933 homes advertised for sale over the past four weeks. Across the combined capital cities, there were 128,702 homes available for sale, 45% of the total stock available for sale.
New listings nationally are now -4.5% lower than they were a year ago and total listings are -2.4% lower than they were at the same time last year.
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