The latest data released by property market researchers indicates that listings in capital cities have risen. Asking prices for property have also increased. This data suggests that the market is still in a period of readjustment. However, positive changes signify that the market is stabilising.
Capital City Listings
Capital city listings in September are up by 4.3 percent. Such a rise lifted the number of listings by 2.4 percent when compared to the same time last year. Of all capital cities, Sydney saw the largest rise in listings, with a 10.3 percent increase during September. Consequently, this rate was a 13.2 percent increase on figures from this time last year.
On a national basis, the majority of capital cities witnessed a rise in the number of listings during September. Hobart was the only capital to record a fall in the number of listings for the year. All other capitals had an increase.
Auction Rates and Volumes
Auction clearance rates have remained high, especially in Melbourne and Sydney. Nevertheless, the number of auctions have declined when compared to last years figures.
According to CoreLogic data, Sydney hit its highest auction clearance rate in over 15-months in September. During this month, clearance rates reached just over 85 percent, a 5 percent rise when evaluated to the previous months data. Compared to the same time last year, this figure was a jump of just over 14.3 percent.
Auction volumes are considerably lower, despite there being market demand. At the same time last year, there were around 1000 auctions, compared to 800 this year. Nonetheless, buyers are confident as a result of the low-interest rate environment. With fewer auction listings, comes greater competition, especially in spring when more buyers are looking to purchase. Real estate agents are also suggesting that the auction spring selling season this year is a little slower than previous years. Many suggest that this is due to the lower numbers of property.
Property Market Asking Prices
Asking prices of property across the majority of capital cities has also increased. Melbourne witnessed the greatest rise with an increase of 15.1 percent recorded for homes. Unit prices in this capital city rose by 4.8 percent.
Perth and Darwin both recorded declines in the asking prices of property. Homes in Perth fell by 5.0 percent in price when compared to this time last year. Apartment asking prices decreased by 4.3 percent. Darwins asking prices for homes dropped by 6.9 percent. However, units only marginally decreased in value by 0.8 percent.
Hobart, on the other hand, saw a significant jump in the asking prices of property. Houses in this capital rose by 6.1 percent. Similarly, unit asking prices increased by 25 percent when compared to data from this time last year.
Australian Home Values
CoreLogic data suggests that capital city home values are continuing to rise. Nationally, increases rose by 7.4 percent.
Dwelling values across the nation are growing at over 1 percent monthly. Other capitals are a little more subdued. Though, the majority of markets are witnessing a slight increase. Strong property market conditions in Sydney and Melbourne correspond with the highest clearance rates in over a year. Also, the low number of advertised stock and steady mortgage demand suggest that the market is stable.
Sydney and Melbourne’s property is not remaining on the market for long. Both houses and units spent an average of 30-days on the market before being sold in Sydney. On the other hand, Melbourne property spent 33-days, on average, on the market.
Property investment experts are still suggesting that investors steer clear of apartments due to an oversupply. In fact, many experts indicate that apartment prices will crash as a result. Investors can avoid this, if they have already purchased an apartment, by waiting until the market corrects itself.
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!