Monthly Housing & Economic Chart Pack, September 2015, Australia
Monthly Housing & Economic Chart Pack, September 2015
This month’s chart pack has been written by the CoreLogic RP Data Research Team. Also included below is a detailed overview on the key findings covered in this month’s report.
Home values still rising however, the rate of growth slowed in August
- Combined capital city home values increased by 0.3% in August 2015 with value rises in Sydney, Adelaide and Darwin, no change in Melbourne and Brisbane and value falls elsewhere.
- Despite slower growth in August, over the 3 months to August home values have recorded strong growth of 5.3% driven largely by Sydney (7.4%) and Melbourne (8.0%).
- Over the past 12 months, combined capital city home values have increased by 10.2% however, only Sydney (17.6%) and Melbourne (10.6%) have recorded growth above this level with values declining in Perth (-1.8%), Darwin (-4.6%) and Canberra (-0.9%).
House sales have levelled while unit transactions are trending lower
- Over the 12 months to June 2015 there were 356,126 houses and 136,552 units sold nationally.
- House sales are 2.0% higher over the year while unit sales are -9.1% 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 are rising but doing so at their slowest pace on record
- Capital city rental rates have increased by just 0.7% 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 reached record lows sitting at 3.5% with yields at record lows in both Sydney and Melbourne
Homes continue to sell quickly with low discounts however, auction clearance rates are easing
- The typical capital city home is currently selling after 37 days on the market compared to 44 days a year ago.
- The average level of discount is recorded at -5.8% compared to -5.6% a year ago.
- Auction clearance rates are trending lower, in fact Sydney has just recorded its lowest auction clearance rate of the year.
New listings are trending higher while total listings are fairly stable
- Over the past 28 days there were 41,864 new homes listed for sale which is 4.2% higher than a year ago.
- Over the same timeframe there were 232,000 total homes listed for sale which is -1.3% lower than a year ago.
Economic data flows remains mixed
- GDP was recorded at 0.2% over the June quarter and at just 2.0% over the year to June 2015.
- New lending to investors remains higher than new lending to owner occupiers however it has weakened over the two most recent months.
- Total housing credit is rising however, investment credit expanded at its slowest monthly pace since October 2013 in July.
- The rate of population growth at a national level continues to slow.
- Dwelling approvals remain very high although they are slightly below their record high. Over the past year there has been more than 220,000 dwelling approvals.
- Consumer sentiment improved in August but remains slightly more pessimistic than optimistic.
- The unemployment rate rose to 6.3% in July and part-time jobs growth continues to outpace full-time growth.
- Official interest rates remained on hold in September however the market is anticipating another cut by early 2015.