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Monthly Housing & Economic Overview - January 2016

Posted on 11 February 2016

Source:  CoreLogic


Home values

  • Combined capital city home values increased by 0.9% in January with values rising in Sydney, Melbourne, Hobart and Canberra, they were unchanged in Adelaide and fell elsewhere
  • Home values were -0.6% lower over the three months to January 2016 with Brisbane, Perth, Hobart and Canberra recording increases
  • Over the past 12 months, combined capital city home values have increased by 7.4% however, only Sydney (10.5%) and Melbourne (11.0%) have recorded significant growth with moderate increases in Brisbane (2.8%), Adelaide (1.1%), Hobart (2.3%) and Canberra (6.0%) while values in Perth (-4.1%) and Darwin (-2.5%) continue to trend lower

House sales have levelled while unit transactions are trending lower
  • Over the 12 months to November 2015 there were 357,192 houses and 137,373 units sold nationally
  • House sales are 2.1% higher over the year while unit sales are -7.3% lower
  • It is important to note, the large volume of off-the-plan sales currently means there is a high likelihood unit sales volumes will be revised higher over the coming years

Rental rates continue to increase at their slowest annual pace on record
  • Capital city rental rates have recorded no change over the past year which is their slowest annual rate of growth on record
  • With record low rental growth and strong value growth rental yields have also fallen and sit at 3.5% which is also a record low

Selling time of homes is seeing a seasonal spike while discounting is also increasing slightly
  • The typical capital city home is currently selling after 41 days on the market compared to 39 days a year ago
  • The average level of discount is recorded at -5.9% compared to -5.7% a year ago
  • Auction clearance rates are trending lower after reaching 80% earlier in 2015 and were sitting at around 60% at the end of last year

Listing volumes are starting to rise from their seasonal slumber and are higher than a year ago
  • Over the past 28 days there were 45,333 new homes listed for sale which is 22.8% higher than a year ago
  • Over the same timeframe there were 243,218 total homes listed for sale which is 4.6% higher than a year ago

Economic data remains mixed
  • New lending to investors has eased sharply over recent months with new lending to owner occupiers now the biggest source of mortgage demand
  • Total housing credit is rising however, investment credit growth continues to slow and is now well below APRAs 10% threshold for annual growth
  • The rate of population growth at a national level has continued to slow
  • Dwelling approvals remain very high although they are slightly below their record high. Over the past year there has been almost 234,000 dwelling approvals
  • Consumer sentiment eased slightly in January with respondents now slightly more pessimistic than optimistic
  • The unemployment rate eased to 5.8% in January which was its lowest level in two years
  • Official interest rates remained on hold in February with the market anticipating a 25 basis point cut to official interest rates by September this year.

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