Monthly Housing & Economic Chart Pack, September 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

  • In the three months to August, the quarterly change in national dwelling values was -1.7%, with capital cities exhibiting a steeper fall in value through the pandemic relative to the regional markets.
  • The risk of negative equity has been somewhat mitigated by the strong upswing in housing values from mid-2019, with national dwelling values remaining 5.8% higher over the year to August.
  • When looking at different value segments of the capital city markets, steeper declines have generally been seen in the top 25% of values since the start of the pandemic. In Melbourne, the high end of the market has declined 7.0% in value.
  • The ACT market has so far been resilient amid the pandemic, and now has the second-highest annual growth rate of the capital city markets, at 6.9%.
  • The Perth dwelling market had the largest annual declines at 2.0%, but there are continued signs the Perth market is stabilising, and values were flat over the month of August.
  • Revised national sales volumes suggest a strong bounce-back in sales over May and June. However, volumes were more subdued in recent months, declining 1.9% in August.
  • Consumer confidence fell 9.5% over August, coinciding with a decline in national sales volumes.
  • Annual growth in rent values fell to 0.6%, and rents have declined -0.8% since March on a national level. Unit markets saw more significant downwards pressure on rents relative to houses.
  • Despite the decline in sales volumes, stability in demand was demonstrated across vendor discounting and the number of days on market. Median days on market across the combined capital cities fell from 47 days in the three months to July, to 45 days in the 3 months to August.
  • Amid renewed restrictions across Melbourne, vendor activity declined. At a time when listings would typically be rising, new listings fell 10.1% nationally in the 4 weeks to September 6th. 
  • The value of finance secured for the purpose of housing purchases has increased 15.8% since a record drop in May. Investor lending rose 12.1%, while owner occupier finance recovered 17.1%. Investor lending as a portion of finance secured for purchases is at a record low.
 

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