Monthly Housing & Economic Chart Pack, October 2021

This month’s chart pack has been written by the CoreLogic Research Team. Also included below is a detailed overview on the key findings covered in this month’s report.

Monthly highlights

  • National home values rose 20.3% in the year to September, the highest growth rate since June 1989.
  • National home values rose 4.8% in the September quarter, which eased from a 6.1% increase in the June quarter.
  • The annual appreciation remained higher across the combined regional Australian dwelling market (23.1%) compared with the combined capital cities market (19.5%).
  • The highest annual growth rate among the regional and capital city dwelling markets was across regional Tasmania, at 27.2%.
  • In the three months to September, the top 25% of values across the capital cities rose 5.7%, compared to 2.6% across the lowest 25% of values.
  • The 28-day change in the hedonic home value index trended down through June, July and August, but seems to have stabilised a little toward the end of the month. Across the combined capitals, the rolling 28-day growth rate peaked at 2.8% in late March for the current cycle.
  • Strong growth across the Perth dwelling market sees values just -2.5% below the previous record high, which was in June 2014.
  • Sales volumes rose 41.9% in the 12 months to September, and transaction volumes through the month of September were estimated to be 25.5% above the five year average.
  • In the 3 months to September, Australian properties typically took 30 days to sell, compared with 42 days over the same period of 2020.
  • Vendor discounting remains extremely tight nationally, at -2.9% in the three months to September, compared with -3.6% in the same period of 2020.
  • New listings have trended higher through September, as social distancing restrictions have started to ease and the spring selling season sees a seasonal uplift.
  • Total listings remained -27.4% below the five year average due to strong absorption from sales.
  • Auction clearance rates have recovered strongly through September, as Melbourne saw some restrictions eased around property inspections. For the past 4 weeks, the average final clearance rate across the combined capital cities was 74.3%.
  • In the year to September, Australian rent values increased 8.9%, which is the strongest annual appreciation in rents since July 2008.
  • Gross rent yields continued to trend lower through September, reaching a fresh record low of 3.3% nationally.
  • Debt to income ratios of six or more jumped to 21.9% of new mortgage lending through the June quarter, and APRA has released new guidance on serviceability assessment rate buffers for new mortgage lending.
 

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