Monthly Housing & Economic Chart Pack, July 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

  • Australian dwelling values rose 13.5% in the 2020-21 financial year, the highest annual growth rate since April 2004.
  • Dwelling value changes for the financial year ranged from 21.1% across regional NSW, to 2.2% across regional WA.
  • Australian dwelling values rose 6.1% in the June quarter, down from a recent peak of 7.0% in the three months to May 2021.
  • The 28-day rolling change in the CoreLogic Home Value index has seen a slowdown in growth across the combined capitals. It is likely the monthly growth rate for this upswing peaked in March 2021.
  • Quarterly dwelling value increases have ranged from 2.1% across Perth, to 8.2% across Sydney. Slowing growth rates are evident across most capital city dwelling markets.
  • Sales volumes have risen 40.7% in the financial year compared with the previous year. Hobart was the only region to see an annual decline in volumes, attributable to low levels of stock.
  • In the year to June, Australian rent values increased 6.6%, which is the strongest annual appreciation in rents since February 2009.
  • Gross rental yields compressed further through June due to value increases outpacing rent rises. Gross rental yields hit a record low 3.4% nationally.
  • The typical time it takes to sell a property across Australia has reduced substantially in the three months to June compared with the same period last year. Median days on market has fallen from 49 days nationally to 29 days.
  • Nationally, the typical vendor discount rate tightened to -2.7% in the three months to June, compared with -4.1% in the same period last year.
  • New listings are trending higher, with new stock added to the market up 10% on the 5 year average level.
  • However, total listings are trending -24.7% below the 5 year average, and remain low across every broad region of Australia.
  • For the week ending 4th of July, the four week average clearance rate across the capital cities was 73.8%, well above the decade average of 63.5%.
  • As the HomeBuilder scheme has tapered, house building approvals are coming off record highs, down -10.3% over May. Unit approvals ticked up 0.7% in the month, but are -10.5% below the decade average.
  • Investors continue to return to the market. New lending for the purchase of investment property across Australia jumped a remarkable 13.3% in the month of May, reaching its highest level since June 2015.
  • First home buyers are comprising a smaller portion of market demand across every state.
  • The RBA maintained the cash rate at 0.1% through July, and continues to monitor trends in home lending carefully.
 

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