Monthly Housing & Economic Chart Pack, May 2018

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.

Download the full chart pack here.

 


Monthly highlights

  • Dwelling values nationally -0.1% lower over the month, the seventh consecutive monthly fall.  Over the month, combined capital city values fell by  -0.3% while the combined regional markets recorded an increase of 0.4%
  • Values fell over the month in Sydney, Melbourne and Brisbane, were unchanged in Perth and rose elsewhere.
  • Over the three months to April 2018, dwelling values nationally were -0.3% lower nationally with the combined capital cities recording a fall of -0.7% while the combined regional markets recorded an increase of 1.3%.
  • Values rose over the past three months in Perth, Hobart, Darwin and Canberra with values falling across the remaining capital cities.
  • The annual rate of dwelling value growth has slowed to 0.2% nationally, which is the nation’s slowest annual rate of value growth since October 2012.
  • Despite the slowing conditions all capital cities except for Sydney, Perth and Darwin have recorded value rises over the year.   
  • The combined regional markets have recorded growth in values over the past year (2.4%) while the combined capital cities have recorded a decline of (-0.3%).
  • Transaction volumes are much lower over the year down -5.7% nationally with Adelaide and Perth the only capital cities in which sales volumes were higher over the year.
  • Rental rates increased by 0.2% over the month to be 1.1% higher over the past three months and 2.0% higher over the past year.  The 2.0% annual growth in rents is the slowest rental growth in 12 months.
  • Rental rates rose over the year across all capital cities except for Perth and Darwin.
  • Rental yields have started to lift from their record lows as rental growth outpaces value growth, yields are currently recorded at 3.69% up from 3.66% in April 2017.
  • The length of time it takes to sell a property has increased relative to a year ago in all capital cities except for Perth, Hobart and Darwin where properties are selling quicker and Melbourne where there is no change.
  • The volume of new stock listed for sale nationally is higher than a year ago while total listings are higher.  Across the cities, total listings are much higher than they were a year ago Sydney and Melbourne, slightly higher in Canberra and lower elsewhere.
  • Population growth remains strong however, an increasing number of residents are leaving NSW with interstate migration to Qld accelerating.
  • Dwelling approvals increased by 2.6% in March 2018, with the number of houses approved for construction continuing to trend higher.
  • In terms of housing finance, investor demand is waning with owner occupiers now the dominant source of demand.  In NSW and Vic, recent removals of stamp duty for first time buyers has resulted in a surge in demand from this sector.
  • The expansion of housing credit slowed over the month of March with credit to investors expanding at its slowest annual pace since October 2016.
  • Official interest rates remain at 1.5% with the market currently expecting a 25 basis point increase in official interest rates by August 2019.

 

 

 

 

Detailed housing and mortgage market statistics
CoreLogic produces an advanced suite of housing market analytics that provides key insights for understanding housing market conditions at a granular level. Granular data is often used for portfolio analysis and benchmarking, risk assessments and understanding development feasibility and market sizing. It gives industry professionals valuable modules which provide essential analytics and insights for decision making and strategy information within the residential property asset class. CoreLogic can tailor reports to suit your business requirements. For more information contact your CoreLogic account manager or email research@corelogic.com.au.