While the property market is experiencing fluctuations, these appear marginal when compared to annual data. Economically speaking, the nation is holding steady, and while both owner-occupiers and investors have reduced the level of their borrowing interest, new loans are still being taken out. Lets look at the data.
Monthly Housing Data
CoreLogic data this month shows that home prices nationally are remaining at a consistent level with an increase of 1.6 percent in value. However, Perth remains behind other capital cities in growth. Home values over the last three months, to May 2016, are 3.6 percent higher; although Perth and Hobart recorded a fall in value over this time.
Over the last 5-months, the value of capital city dwellings has risen by 5 percent; Perth recorded the only decline. Data indicates that a 10.0 percent home price increase has occurred nationally over the last 12-months. Across the capital cities the changes in dwelling values over the year are as follows:
– Sydney: +13.1 percent.
– Melbourne: +13.9 percent.
– Brisbane: +7.1 percent.
– Adelaide: +3.9 percent.
– Perth: -4.2 percent.
– Hobart: +6.1 percent.
– Darwin: -3.5 percent.
– Canberra: +5.7 percent.
House and unit sales figures over the last year continue to fall. Nationally house sales were 4.1 percent lower, and unit sales dropped by 10.3 percent. With changes in legislation affecting investor numbers, many capital cities are recording lower sales numbers. However, Perth and Hobart, where home prices have fallen considerably over the last 12-months, are recording a higher numbers of sales. The high level of off-the-plan apartments that are currently on the market is expected to distort sales figures over the next 12 to 24-months.
Homes in capital cities are typically taking around 44-days to sell compared to an average of 42-days recorded 12-months ago. Capital city units are selling at the same rate of 42-days compared to data from this time last year.
The average level of discount offered for homes that sold is around 6 percent, and approximately 5.3 percent for units. Twelve months ago discounts offered on homes were at 5.9 percent and 5.8 percent for units.
Auction clearance rates are said to have rebounded from their declines and are currently in the 60 percent range. Nationally, they are averaging 64.8 percent over the year.
The number of homes listed for sale has risen. Over the last month, more than 42,000 homes were newly listed for sale, with just over 26,000 of these being in capital cities. When compared to data 12-months ago, the number of homes for sale has risen by 1.9 percent and by 1.3 percent across the capital cities.
Over the last month, a total of just over 240,000 homes were listed nationally, with just over 107,400 of these homes listed in capital cities. The total number of listings across the nation are 1.8 percent higher than 12-months ago, and they are 10.4 percent higher than figures recorded over the capital cities 12-months previously.
The Rental Market
Combined capital city rents averaged $489 a week, with unit rents hovering around $469 per week. Over the last 12-months home rental rates decreased by 0.7 percent, while unit rental rates increased by 1.6 percent.
Rental rates in Perth and Darwin have fallen over the last year. However, gross rental yields for houses nationally have been recorded at 3.3 percent and unit yields recorded at 4.3 percent; although these rates are at record lows compared to previous data.
Lending data for owner-occupiers and investors shows a steady decline in new loans. While the total credit value for housing increased, investment credit is well-below the Australian Prudential Regulation Authorities (APRAs) desired 10 percent speed limit. National population growth is also slowing.
Dwelling approvals have increased and are still considered to be high, although they are not at peak levels when compare to data from 18-months ago. This rate is associated with consumer sentiment which fell to its lowest level in April but appears to be lifting to above 2014 levels over the last month.
Are you thinking of entering the property market or looking to refinance? If you said YES, then contact eChoice, we can help YOU find the right home loan.
Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!