Monthly Housing & Economic Chart Pack, August 2020

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

  • Dwelling value falls remain mild since the onset of the pandemic. The change in national dwelling values was -1.6% in the 3 months to July, led by a -2.0% decline across the capital city markets.
  • The CoreLogic daily home value index for the combined capital cities was -0.8% lower over the 28 days to 1st of August. The rate of decline seemed to stabilize slightly in the past month, but the resurgence of COVID-19 cases presents high uncertainty.
  • Since March, upper quartile dwelling market values have been most affected by the pandemic, particularly across Sydney and Melbourne. The upper quartile value of the Melbourne market had the largest declines since March (-5.2%).
  • The ACT dwelling market has proven to be the most resilient amid the pandemic thus far. ACT dwelling values are up 1.3% in the three months to July, and sit 7.2% higher over the year to July.
  • Hobart dwelling values slipped -0.2% in July, taking dwelling values down -0.2% from the record high reached in June. 
  • National settled sales have bounced back since dipping an estimated 34% in April. Sales volume estimates increased a further 13.5% over July, pushing sales volumes back above the decade average. 
  • Annual growth in national rent values was weak, at 0.6%. This follows national rent values falling -0.7% between March and July.
  • Nationally, dwelling value falls have so far been larger than rent value falls, which has led to a slight increase in gross rental yields of 3 basis points over July. National gross rental yields currently sit at 3.76%.
  • Gross rental yields are lowest across Sydney, at 2.9% in July.
  • Properties are taking longer to sell. Median days on market increased to 49 days across the combined capital cities market in the 3 months to July, up from 42 days in June.
  • In May, the portion of new housing finance to investors fell to a new record low of 25.0%, as investor lending for the purchase of property fell fast than owner occupier lending.
  • The latest data from APRA shows lending conditions were relatively steady from the December 2019 to March 2020 quarter, signifying stable lending conditions before the start of the pandemic. 
 

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