admin-ajax.php

Latest Economic & Housing Market Indicators | October 2014

RPData have released their stats for our housing markets up until the end of September 2014.

Here are some of the highlights:

Capital city home values increased by 0.1% in September, 2.9% over the third quarter and they increased by 9.3% over the past year

  • Home values increased by 0.1% across the combined capital cities in September and rose by 2.9% over the three months to September 2014.
  • Over the month, home values fell in all capital cities except for Sydney, Brisbane and Adelaide.
  • Over the past three months, values increased in every city except for Perth and Hobart.
  • Capital city home values rose in each capital city over the past year, the greatest increases were recorded in Sydney (14.3%), Melbourne (8.1%), Darwin (7.1%) and Brisbane (6.4%) with all other capital cities recording value growth of less than 6.0%.
  • The annual rate of value growth across the combined capital cities has slowed from a peak of 11.5% in April 2014 to 9.3% over the past 12 months.1

Sales activity across the country is higher than at the same time last year but has not returned to the heights reached in late 2013

  • Over the 12 months to July 2014 there were 351,738 houses and 140,277 units sold across the country.
  • House sales are 10.6% higher over the year compared to an 8.1% rise in unit sales.

2

Vendor metrics indicate quite strong housing market conditions

  • Auction clearance rates are consistently around 70% each week across the combined capital cities.
  • Discounting levels and days on market are low although they have increased slightly over recent months.

3

Rental markets are fairly soft

  • The median weekly rent across the combined capital cities is recorded at $481 and rents have increased by 2.1% over the past year.
  • Gross rental yields are recorded at 3.8% across the combined capital cities, down from 4.1% a year ago.

4

Mortgage demand has started to level recently

  • The RP Data Mortgage Index (RMI) shows that mortgage demand has begun to level over the past couple of months.
  • ABS housing finance data shows a similar trend with the market largely driven by upgraders and investors.

5

Economic data flows remains mixed

  • Population growth is winding down but remains high on an historic basis.
  • Dwelling approvals have shifted much higher over the past year and are at their highest ever level on an annual basis.
  • With population growth slowing and building approvals remaining high (despite the recent fall) we may see a better relationship between approvals and population growth over the coming years.
  • Consumer sentiment has been weak since the Federal Budget and fell again in September.
  • The unemployment rate has reduced to 6.1% over the month and despite the monthly falls it sits at its highest level in more than a decade.
  • Mortgage rates remain low with banks competing hard for their share of the home loan business.

6



icon-podcast-large

SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

icon-email-large

PREFER TO SUBSCRIBE VIA EMAIL?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Avatar for Property Update

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'Latest Economic & Housing Market Indicators | October 2014' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*

facebook
twitter
google
0
linkedin
0
email

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!