This week’s ANZ Property Market Update reports the housing market is supported by strong underlying demand and moderate price growth expectations.
- Home prices softened in the past week, with Sydney the only capital to post positive price growth in seasonally adjusted terms.
However in trend terms, price growth has clearly eased from the strong momentum in the first half of 2014 (see Figure 1). Across capital cities, home price gains in Sydney have clearly outperformed in recent weeks, gaining over AUD4,000 in value (0.5%) in the past two weeks.
In contrast Melbourne homes have lost around AUD $2,500 in value (-0.4%) over the same period.
However looking through the weekly volatility, home prices are increasing in trend terms Sydney, Melbourne and Brisbane, reflecting a broadly positive outlook for housing sales and price growth in these cities.
- The depth of home buyer demand is holding up well on solid Spring auction levels, with auction clearance rates reflecting buoyant home buyer sentiment.
Despite some concerns about speculative sales activity, auction sales and price data in recent weeks reflect a housing market supported by strong underlying demand and moderate price growth expectations.
Looking ahead, auction clearance rates have stabilised around 68%, pointing to steady home price growth in the coming months.
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