Monthly Housing & Economic Chart Pack, October 2017
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.
Dwelling values rose by 0.2% nationally in September 2017
- National dwelling values increased by 0.2% in September 2017 with capital city values rising by 0.3% and combined regional areas seeing values rise 0.1%. Across the individual capital cities, values fell in Sydney and Darwin, were unchanged in Adelaide and rose elsewhere.
- Dwelling values were 0.5% higher nationally over the September 2017 quarter with capital city values 0.7% higher and regional market values unchanged. Perth and Darwin were the only cities in which values fell over the quarter
- Dwelling values are 8.0% higher over the past year, 8.5% higher across the combined capital cities and 5.6% higher across the combined regional markets.
- Over the year, Sydney, Melbourne and Hobart have recorded value growth in excess of 10% while values are lower in Perth and Darwin.
The recent declining trend in settled house and unit sales has starting to level in the smaller capital cities with sales continuing to decline in the larger cities
- It is estimated that there were 299,452 settled sales of capital city dwellings over the 12 months to September 2017 with the number of settled sales -5.0% lower over the year.
- Both house (-3.9%) and unit (-7.2%) sales have fallen over the past year.
- Transaction volumes have fallen over the past year in Sydney, Melbourne, Brisbane and Canberra but are higher across the remaining capital cities.
Rental growth has accelerated while the slide in gross rental yields has slowed
- Rents are 29% higher over the year with capital city rents increasing 2.8% and regional market rents 3.0% higher
- Combined capital city rents are increasing at their fastest annual pace since April 2013 and combined regional market rents are rising at their fastest annual pace since June 2012
- Rents have increased over the past year in all capital cities except for Brisbane, Perth and Darwin however, the rate of change in rents over the past 12 months has been greater than the 12 month change a year ago in all capital cities
- Gross rental yields were recorded at 3.6% nationally in September 2017; 3.3% across the combined capital cities and 4.9% across the combined regional markets.
- Gross rental yields are lower than they were a year ago across all capital cities.
Discounting levels are falling while days on the market has risen from its recent lows
- The typical capital city dwelling which sells for less than its initial list price is being discounted by 5.8% compared to 6.2% 12 months ago.
- The level of discounting is currently lower than it was a year ago across all capital cities except Perth and Darwin
- The typical capital city dwelling is taking 43 days to sell which is lower than the 50 days it took a year ago but up from a recent low of 36 days.
- The days on market figure is higher over the year in Sydney, Brisbane and Perth but lower elsewhere
The number of properties advertised for sale is lower than a year ago nationally but slightly higher across the capital cities
- The number of new properties advertised for sale is -7.7% lower than a year ago nationally and -4.5% lower across the combined capital cities.
- Sydney, Adelaide and Canberra are the only capital cities to currently have a greater number of new listings than they had a year ago.
- Over the past 28 days, total advertised properties were -5.7% lower than a year ago nationally but 0.2% higher across the combined capital cities.
- Melbourne, Perth, Hobart and Darwin were the only capital cities to have fewer total homes advertised for sale currently relative to last year.
Auction clearance rates have eased from levels earlier this year
- Combined capital city auction clearance rates have remained below 70% for each of the past 18 weeks.
- Sydney’s final auction clearance rate has been above 70% just twice in the last 18 weeks
- Melbourne’s clearance rate has remained above 70% all year except for one week in August
- Earlier in the year Sydney and Melbourne have had clearance rates above 80%, although the clearance rates still point to market growth they aren’t quite as strong as they have been.
Broader economic data also has a significant impact on housing market conditions
- The number of dwellings approved for construction have eased from record-high levels but has seemed to of stabilised recently at levels which are well above the long-term average
- Population growth remains at high levels however, most of the growth is occurring in NSW and Vic
- Upgraders and investors remain the key drivers of housing demand however, investor demand is slowing and it is expected that over the coming months there will be a moderate increase in first home buyer demand
- Mortgage rates remain at low levels however, investors are typically paying 60 basis points more on their mortgage than owner occupiers.
Detailed housing and mortgage market statistics