Monthly Housing & Economic Chart Pack, August 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

  • National dwelling values fell for the 10th consecutive month in July 2018, down
    -0.6% which was the greatest monthly fall in values since September 2011.  Over the month, combined capital city values fell by -0.6% while the combined regional markets recorded a -0.4% fall.
  • Values rose over the month in Brisbane, Darwin and Canberra, were unchanged in Hobart and they fell elsewhere.
  • Over the three months to July 2018, dwelling values nationally were -0.9% lower which was their largest fall since January 2012 with the combined capital cities recording a fall of -1.1% while the combined regional markets recorded an fall of -0.2%.
  • Values rose over the past three months in Brisbane, Adelaide and Perth but fell elsewhere.
  • Dwelling values fell by -1.6% nationally over the past year which was their largest annual decline since August 2012.
  • Despite the slowing conditions all capital cities except for Sydney, Melbourne Perth and Darwin have recorded value rises over the year however, the decline in Sydney values is the largest since march 2009 and the fall in Melbourne is the greatest since November 2012.   
  • The combined regional markets have recorded growth in values over the past year (1.6%) while the combined capital cities have recorded a decline of (-2.4%) although both regions are seeing a slowing trend in value changes.
  • Transaction volumes are much lower over the year down -9.8% nationally with Adelaide the only capital city in which sales volumes were higher over the year.
  • Rental rates fell by -0.2% over the month to be -0.1% lower over the past three months and 1.6% higher over the past year. 
  • Rental rates rose over the year across all capital cities except for Sydney and Darwin with Sydney recording its largest annual fall in rents on record.
  • Rental yields have started to lift from their record lows as rental growth outpaces value growth, yields are currently recorded at 3.72% up from 3.63% in July 2017.
  • Perth and Hobart are the only capital cities in which gross rental yields are now lower than they were a year ago.
  • The length of time it takes to sell a property has increased relative to a year ago in all capital cities except for Adelaide, Hobart and Canberra where properties are selling quicker.
  • The volume of new and total stock advertised for sale nationally is lower than a year ago.  Across the cities, total listings are much higher than they were a year ago Sydney and Melbourne and marginally higher in Brisbane and Perth while they are 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 1.6% in June 2018, with increases for houses and units.  Although approvals are down from their peak they remain at elevated levels that are well above long-term averages.
  • 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 continued to slow in June 2018 with credit to investors expanding at its slowest annual pace on record.
  • Official interest rates remain at 1.5% with the market currently not expecting a full 25 basis point change in the cash rate over the next 18 months.

 

 

 

 

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.