CoreLogic recently released their chart pack for April which gives us a good overview of what’s happening in the property markets around Australia as well as some of the economic factors impacting our markets.
APRA’s measures have had the desired effect, with the rate of home price growth the lowest it’s been since September 2013.
Nationally home price growth has slowed to 6.4% over the last 12 months, however, the Sydney (7.4%) and Melbourne property markets (9.8%) recorded significantly higher growth.
Here are some key points from the report:
Home values increased by 0.2% in March 2016 with values 1.6% higher over the first quarter of the year
- Combined capital city home values increased by 0.2% in March with value rises recorded in Sydney, Adelaide, Perth and Darwin while values fell elsewhere
- Home values were 1.6% higher over the first quarter of 2016 with Brisbane an Perth the only capital cities in which values fell
- Over the past 12 months, combined capital city home values have increased by 6.4% however, Sydney (7.4%) and Melbourne (9.8%) have recorded significantly higher growth with moderate increases in Brisbane (4.5%), Adelaide (3.2%), Hobart (4.8%) and Canberra (1.7%) while values in Perth (-2.0%) and Darwin (-1.8%) continue to trend lower
Home sales have trended lower over recent months
- Over the 12 months to March 2015 it is estimated that there were 340,255 houses and 132,359 units sold nationally
- House sales are -3.4% lower over the year while unit sales are -9.7% lower
- It is important to note, the large volume of off-the-plan sales currently means there is a high likelihood unit sales volumes will be revised higher over the coming years
Rentals rates are -0.2% lower over the year, the weakest rental conditions on record
- Capital city rental rates have recorded a -0.2% fall over the past year which is their weakest conditions on record
- With rental rates falling and value growth slowing but generally much stronger, rental yields have trended lower over the year and sit at 3.5% which is also a record low
Selling time of homes is seeing a seasonal spike while discounting is steady over the year
- The typical capital city home is currently selling after 60 days on the market compared to 53 days a year ago
- The average level of discount is recorded at -5.6% which is the same level as a year ago
- Auction clearance rates have rebounded strongly early in 2016 and have averaged 68.5% so far this year
Listing volumes are lower than they were at the same time last year and have started trending lower
- Over the past 28 days there were 41,381 new homes listed for sale which is -2.2% lower than a year ago
- Over the same timeframe there were 235,897 total homes listed for sale which is -4.2% lower than a year ago
Economic data remain mixed
- New lending to both investors and owner occupiers is trending lower with investment demand falling at a greater pace
- Total housing credit is rising however, investment credit growth continues to slow and is now well below APRAs 10% threshold for annual growth
- The rate of population growth at a national level has continued to slow over the September 2015 quarter
- Dwelling approvals remain very high although they are now trending lower
- Consumer sentiment remains at a fairly neutral level
- The unemployment rate fell to 5.8% in February
- Official interest rates remained on hold in March with the market anticipating a 25 basis point cut to official interest rates by the end of this year.
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