CoreLogic Monthly Report April 2016

Home values increased by 0.2% in March 2016 with values 1.6% higher over the first quarter of the year

• Combined capital city home values increased by 0.2% in March with value rises recorded in Sydney, Adelaide, Perth and Darwin while values fell elsewhere
• Home values were 1.6% higher over the first quarter of 2016 with Brisbane an Perth the only capital cities in which values fell
• Over the past 12 months, combined capital city home values have increased by 6.4% however, Sydney (7.4%) and Melbourne (9.8%) have recorded significantly higher growth with moderate increases in Brisbane (4.5%), Adelaide (3.2%), Hobart (4.8%) and Canberra (1.7%) while values in Perth (-2.0%) and Darwin (-1.8%) continue to trend lower

Home sales have trended lower over recent months

• Over the 12 months to March 2015 it is estimated that there were 340,255 houses and 132,359 units sold nationally
• House sales are -3.4% lower over the year while unit sales are -9.7% 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

Rentals rates are -0.2% lower over the year, the weakest rental conditions on record

• Capital city rental rates have recorded a -0.2% fall over the past year which is their weakest conditions on record
• With rental rates falling and value growth slowing but generally much stronger, rental yields have trended lower over the year and sit at 3.5% which is also a record low

Selling time of homes is seeing a seasonal spike while discounting is steady over the year

• The typical capital city home is currently selling after 60 days on the market compared to 53 days a year ago
• The average level of discount is recorded at -5.6% which is the same level as a year ago
• Auction clearance rates have rebounded strongly early in 2016 and have averaged 68.5% so far this year

Listing volumes are lower than they were at the same time last year and have started trending lower

• Over the past 28 days there were 41,381 new homes listed for sale which is -2.2% lower than a year ago
• Over the same timeframe there were 235,897 total homes listed for sale which is -4.2% lower than a year ago

Economic data remain mixed

• New lending to both investors and owner occupiers is trending lower with investment demand falling at a greater pace
• 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 over the September 2015 quarter
• Dwelling approvals remain very high although they are now trending lower
• Consumer sentiment remains at a fairly neutral level
• The unemployment rate fell to 5.8% in February
• Official interest rates remained on hold in March with the market anticipating a 25 basis point cut to official interest rates by the end of this year.

 

Go Melbourne

 

Thanks for sharing D.T.

At the same time, Domain reports very solid increases for both house and unit rents over the past year. So, who is right here?

 

Ones over the past year, and ones over the past month, different figures are expected

 

no, both reports say over the past year

 

Any data on Gold Coast?

 

What do you mean, didn't values fall everywhere besides Sydney, Adelaide, Perth and Darwin?

 

Ouch

 

This data confirms time and time again that Sydney's house prices are a good indication of where the housing market sits everywhere else.

If Sydney was to backward, everywhere else will fall at a higher rate. For now the market seems to be stabilising.

 

Do you really think all markets follow Sydney?

 

stats/data can never be totally accurate because its lumping everything together, its too broad.

There are areas in Sydney west that have started falling back and auctions in decline, and am sure there are other pockets. The data wont tell you this, that's why investors need to watch closely what is happening on the ground and watch volume, sales and days on the market for specific areas.

 

No, I think that comes under one of those myths that some property guru from Sydney made up

 

Melbourne is a very strong market, double digit growth, am playing in this market I should know.

I have mentioned before I find stats very confusing and not accurate in the main, I think its good to look stats but do not rely on them alone to determine future CG.

 

I should think so.
Everyone else is saying Melbourne is still going.

 

Not all areas of Melbourne most of the growth is now happening in areas more than 15 klms from the city. The Outer suburbs are very strong...but even these suburbs will cool by late next year....just a normal part of the cycle

 

agree, in particular South east

 

Not only the Southeast i.e Cranbourne, Officer, Clyde ...the outer North/Northwest - Mickelham, Craigieburn, Mernda, Wollert, Wallan, Rockbank and so is Tarneit, Trugannia, Werribee is on fire...areas where people poo poo'ed things.

 

Yes well this is nothing new, in fact quite recently it's become apparent that you have become the queen of do's and dont's in regards to "location location", so I hope you have your pooper scooper handy when fate dishes out the CG in the months to come

 

It won't matter if you purchased 12 months ago, or better still 24 months ago

 

Imitation is the sincerest form of flattery.