Monthly Housing & Economic Chart Pack, December 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 were unchanged for the second straight month in November 2017
- National dwelling values were unchanged in November with combined capital city dwelling values falling -0.1% and regional market values increasing 0.2%.
- Sydney and Darwin recorded value falls over the month while values were unchanged in Adelaide.
- Dwelling values were 0.2% higher nationally over the three months to November 2017 quarter, their slowest quarterly rate of growth since April 2016. Combined capital city values increased by 0.2% (their slowest growth since May 2016) and regional market values increased 0.4%.
- Sydney and Darwin were the only capital cities in which values fell over the quarter.
- Dwelling values are 5.2% higher over the past year which is half the rate of growth in May of this year and the slowest annual rate of growth in 12 months. Over the past year, values are 5.5% higher across the combined capital cities and 4.2% higher across the combined regional markets.
- Over the year, 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 70,173 settled sales of dwellings nationally over the 12 months to November 2017 with 296,245 settled sales across the combined capital cities and 173,928 settled sales across regional markets.
- Nationally, the number of settled sales was -4.8% lower over the year with combined capital city sales -6.2% lower and combined regional market sales down -2.3%
- 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 been steady over recent months as value growth has slowed, steadying gross rental yields
- Rents are 2.8% higher over the year with capital city rents increasing 2.7% and regional market rents 3.1% higher
- Rents have increased over the past year in all capital cities except for 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 November 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 except for Darwin.
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 6.0% 12 months ago.
- The level of discounting is currently lower than it was a year ago in Melbourne, Brisbane, Hobart and Canberra and unchanged in Adelaide.
- The typical capital city dwelling is taking 41 days to sell which is marginally higher than it took a year ago but up from a recent low of 36 days in March this year.
- The days on market figure is higher over the year in Sydney and Brisbane and 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 -5.7% lower than a year ago nationally and -4.3% lower across the combined capital cities.
- Adelaide and Darwin 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 -4.5% lower than a year ago nationally but 2.0% higher across the combined capital cities.
- Perth, Hobart and Darwin were the only capital cities to have fewer total homes advertised for sale currently relative to last year.
- Total listings in Sydney are currently at their highest level since late 2012.
Auction clearance rates are substantially lower than levels earlier this year
- Combined capital city auction clearance rates have remained below 65% for each of the past 6 weeks.
- Sydney’s final auction clearance rate has been below 60% each of the past 5 weeks and are much lower than a year ago.
- Melbourne’s clearance rate has remained below 70% for each of the past 3 weeks.
- Earlier in the year Sydney and Melbourne have had clearance rates above 80% highlighting a marked slowdown, particularly in Sydney.
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 to above the long-term average with approvals lifting over the past three months.
- 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 first home buyer demand is lifting, particularly in NSW and Vic on the back of stamp duty concessions available.
- 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