The RP Data-Rismark Home Value Index results for August 2013 were released earlier this week. The results showed that across the combined capital cities, home values increased by 0.5% in August and were up 4.0% over the past three months; the largest increase over a three month period since April 2010.
Over the year, values are 5.3% higher, the largest annual increase in values since December 2010.
The Reserve Bank (RBA) Board held their September board meeting earlier this week. At the meeting, the RBA Board decided to keep official interest rates on hold at 2.5%.
The statement following the meeting revealed very little new detail however, their final comments are important to note: ‘At today’s meeting, the Board judged that the setting of monetary policy remained appropriate.
The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target.’
The Australian Bureau of Statistics (ABS) released the national accounts for the June 2013 quarter this week. The national account revealed that gross domestic product (GDP) has increased by 0.6% over the June 2013 quarter and is 2.6% higher over the year to June 2013.
[sam id=34 codes=’true’]Other components of the release revealed that the household savings ratio over the quarter was recorded at 10.8%, its highest level since the September quarter of 2011.
Disposable income growth is extremely tepid currently, rising by just 0.7% over the past year. The results highlight that economic growth is below trend and in-line with the RBA’s forecasted rate of economic growth of 2.5%.
The ABS also released retail trade data for July 2013 earlier this week. It is important to note that this data release doesn’t capture on-line and overseas purchases.
The data showed that retail trade increased by 0.1% over the month, has increased by 0.2% over the past three months and is just 1.9% higher over the year.
The magnitude of the retail slowdown is evident when you consider that over the same period a year ago, retail trade had increased by 3.7%. Department stores in particular are struggling with retail trade -3.4% lower over the year.
National Auction Clearance Rates
The weighted average auction clearance rate over the past week was recorded at 71.5% across 2,000 auctions, the highest clearance rate since the week ending 2 May 2010.
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 down from 76.2% across 712 auctions the previous week to 72.1% across 837 auctions last week.
In Sydney, auction clearance rates were recorded at 79.6% last week across 851 auctions, up from 75.3% across 557 auctions the previous week. RP Data is currently anticipating 1,231 capital city auctions over the current week.
Weekly Advertised Listings
Over the four weeks to 2 September 2013, there were 39,935 newly advertised properties listed for sale nationally. There was a slight rise in new listings over the week (0.6%) however, they were -2.7% lower than at the same time last year.
Across the combined capital cities, new listings rose 1.8% over the week however, they were -0.4% lower than at the same time last year.
There are currently 246,971 properties listed for sale across the country. Total listings at a national level have fallen by -0.5% over the week and are -8.9% lower than they were at the same time last year.
Across the combined capital cities, total listings have fallen by -0.3% over the week and are -16.3% lower than they were at this time a year ago.
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