Looking at the increase in the number of sales and the value of sales highlights where demand is growing and where more commission is available for industry participants across the country.
Over the past 12 months the vast majority of council areas nationally that have recorded the greatest increase in the total value of sales have been located in regional areas of the country.
Over the 12 months to March 2016, there were 467,993 dwelling sales nationally with a total value of $281.2 billion. Compared to the same 12 month period in 2015, the number of sales were -6.7% lower this year and the total value of these sales were -2.0% lower.
The difference in sales volumes and the value of sales between capital city and regional markets highlights that regional housing markets are starting to show an improving trend. Over the year there were 301,776 capital city dwelling sales worth $213.3 billion; the number of sales was -9.9% lower than a year ago and the value of sales was -0.3% lower over the year. In terms of the combined regional markets, there was 166,217 sales which was -0.3% lower over the year while the value of these sales rose by 3.3% to $67.9 billion.
Looking at the list of the 50 council areas nationally that have recorded the greatest annual increase in the value of sales, only 4 of the 50 areas listed are located in capital cities. The remaining 46 locations are in regional areas of the country however, many are within larger regional areas. Note that for the purposes of the list we have only included those council regions that have had at least 100 dwelling sales over the past year.
Top 50 council areas for increases in total value of sales over the year to March 2016
In 43 of the 50 regions listed the percentage increase in the total value of sales has been greater than the lift in sales volumes. This tends to reflect an increase in values along with an uplift in demand, In fact, only 3 of the 50 regions listed have recorded fewer sales over the past 12 months.
Looking at the results across the states, 31 of the council areas are located in NSW, 5 are in Vic, 1 is in Qld, 8 are in SA and 5 are in Tas. Regional markets in NSW are showing the highest levels of demand and value growth of all regional markets across the states and territories. Given this, it is no wonder that NSW dominates the list.
With mortgage rates low, certain capital city housing markets becoming unaffordable and an improvement in confidence surrounding regional housing, we would expect many of these council areas to see further increases in the total value of sales over the coming year.