A lot can happen in one week in our property markets, can't it?
So here's a look back at some of the things I read or learned this week, that I believe you should also know.
1. We're now in a buyer's market
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We've moved from a boom-time sellers' market into more of a buyer's property market.
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At a national level, properties are taking longer to sell.
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In the three months to July, the median days on market was 32, up from a recent low of 20 days over the three months to November.
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Similarly, vendor discounting has increased from a recent low of -2.8% recorded in three months to April last year.
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In the three months to July the median vendor discount at the national level was -3.8% -so vendors are really not having to slash their prices, despite what the media tries to tell us.
- Also read:52 years of valid reasons not to invest
- Also read:If Australia is in a housing crisis, why are there so many vacant homes?
- Also read:Inflation is the 2022 boogeyman | Property Insiders [Video]
- Also read:Foreign investor crackdown: Australia pulls back the welcome mat
- Also read:11 factors that affect the value of your property
2. Regional prestige lifestyle areas are the first to show market weakness
After COVID lockdowns fuelled record-breaking growth rates among many of Australia’s regional lifestyle areas, NSW and Queensland’s beach and country hot spots have been the first to register a quarterly fall in house values.
CoreLogic’s latest quarterly Regional Market Update shows the largest 25 non-capital city regions all recorded an increase in house values for the year.
NSW’s Riverina region was the best performer among regional house markets, with an annual increase of 27.8%, followed by Wide Bay (Qld) and New England and North West (NSW), up 26.8% and 26.4% respectively.
The lowest yearly growth rate was recorded across Ballarat in Victoria (7.4%), followed by Bunbury in Western Australia (9.5%).
Annual figures show regional dwelling values jumped 17.0%, outpacing the combined capitals, which saw dwelling values rise 5.4% over the same period.
Despite the widespread capital gains in regional house values, 10 regions recorded values declines in the three months to July.
The growth in regional dwelling values has slowed from a peak of 6.4% in December last year to -0.2% over the three months to July 2022.
3. Rental market competition heats up as visa applications surge
According to the Home Affairs Department, the number of international students applying for visas hit a record high in June as city life and international travel resumed.
In an update sent to education providers, the department stated, “this is the largest number of offshore applications received in a single month in the last 10 years”.
Finding a rental property at the moment is already tough for would-be tenants, with significant competition and little choice.
A surge in international student arrivals is likely to add further pressure to already tight rental markets in Aussie capitals.
4. Where are all the students and backpackers?
We know unemployment is very, very low.
Some labour market tightness is due to a slower resumption of migration.
Some signs that this may improve with student visas granted back to pre-pandemic levels - see the attached chart
China's zero-COVID policy is a key uncertainty here given that Chinese students comprised around 30% of all foreign students pre-pandemic.
