National Housing Market Update [Video] – August 2016

The CoreLogic July Home Value Index results reported a 0.8 per cent rise over the month, taking capital city dwelling values 6.3 per cent higher over the first seven months of the year. 6203158_l

The first month of the new financial year saw another rise in capital city dwelling values, with the CoreLogic hedonic eight capital city aggregate index rising 0.8 per cent over the month to reach a new record high.

While values are still rising, four of Australia’s eight capital cities recorded a fall in dwelling values over the month.

Simultaneously, the rate of growth across the combined capitals aggregate index slipped back a notch after bouncing higher in April and May.

The annual rate of growth, which hit a recent peak at 11.1 per cent across the combined capitals index in October last year, is now tracking at 6.1 per cent; the slowest annual rate of appreciation since September 2013. 10927901_l

July marks the 50th month of the combined capitals growth cycle, which commenced in June 2012.

Over the cycle to date, capital city dwelling values have risen by 38.3 per cent.

The recent moderation in the rate of capital gains should be viewed as a positive sign that growth in dwelling values may be returning to more sustainable levels.

However, the growth trend rate is still tracking considerably faster than income growth resulting in a deterioration of housing affordability.

The erosion in housing affordability is likely to be one factor working to slow housing demand across price sensitive market segments.

The latest growth in dwelling values comes at a time when rental conditions remain soft. 


Capital city rents were down again over the month to be 0.6 per cent lower over the past twelve months.

While low yields haven’t been enough to deter investors, if the pace of capital gains continues to trend lower, low rental yields are likely to lead to financing challenges due to tighter serviceability requirements and the impact on cash flow, not to mention a potential increase in rental supply resulting in higher vacancy rates.

It may be too early to gauge the impact of the July election on dwelling values, however there has been no discernable uplift in the data flows across CoreLogic platforms, which account for the majority of lenders valuation instructions and real estate agent activity.

coreaug126030291 - growing home sales

The number of mortgage related valuations were approximately 4% lower over the month, suggesting a further slowdown in housing credit during July.

Additionally, real estate agents were less active on CoreLogic platforms over the month, indicating fewer properties were being prepared for sale compared with June.

As the housing market moves through its fourth year of growth, several other measures are potentially indicating that buyers may be starting to gain some leverage in the market.

The number of dwelling transactions across the capital cities has been trending lower, with total dwelling sales over the most recent three month period now tracking 17.9 per cent lower than at the same time a year ago.


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.

Need help listening to michael yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


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


Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit

'National Housing Market Update [Video] – August 2016' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.


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...