Monthly Housing & Economic Chart Pack, August 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.
Capital city dwelling values continued to rise in July 2017
- Combined capital city dwelling values increased by 1.5% in July 2017 with values increasing across all capital cities except Brisbane, Perth and Darwin.
- Over the three months to July 2017, capital city dwelling values increased by 2.2% with values increasing in Sydney, Melbourne, Adelaide and Canberra but falling elsewhere.
- Dwelling values have increased by 10.5% over the past 12 months with values increasing by more than 10% over the year in Sydney, Melbourne and Canberra.
- Dwelling values have continued to fall over the past year in Perth and Darwin.
The declining trend in settled house and unit sales is starting to level in most capital cities
- It is estimated that there were 303,412 settled sales of capital city dwellings over the 12 months to July 2017 with the number of settled sales -4.3% lower over the year.
- Both house and unit sales have fallen over the past year.
- Transaction volumes have increased over the year in Hobart and Darwin but fallen across all other capital cities.
Until recently rental growth has been sluggish but it is now picking up, particularly in the markets where dwelling value growth has been stronger
- Combined capital city rents have increased by 2.2% over the 12 months to July 2017 which is their fastest annual rate of growth since May 2014.
- Rental rates have continued to fall over the past year in Perth and Darwin however, rental growth has accelerated over the year in all other capital cities.
- Gross rental yields remained at their historic low of 3.1% in July.
- Yields are unchanged over the year in Adelaide, and Canberra and lower elsewhere.
Auction clearance rates remain strong but have eased from their recent highs
- Combined capital city auction clearance rates have remained below 70% for each of the past nine weeks.
- Sydney’s final auction clearance rate has been above 70% just once in the last eight weeks and just recorded its lowest reading since late 2015.
- Melbourne’s clearance rate has remained above 70% all year and has just recorded its strongest result in seven weeks.
- 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.
Discounting levels are falling while days on the market is creeping slightly higher
- The typical capital city dwelling which sells for less than its initial list price is being discounted by 5.7% compared to 6.5% 12 months ago.
- Adelaide and Perth are the only two capital cities in which discounting levels have increased over the year.
- The typical capital city dwelling is taking 42 days to sell which is lower than the 47 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 Brisbane and Perth but lower elsewhere.
The number of properties advertised for sale is lower than a year ago nationally and at a similar level across the capital cities
- The number of new properties advertised for sale is 2.2% higher than a year ago nationally and 3.5% higher across the combined capital cities.
- Brisbane, Perth and Hobart are the only capital cities to currently have fewer new listings than they had a year ago.
- Over the past 28 days, total advertised properties were -5.6% lower than a year ago nationally and 0.1% 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.
Broader economic data also has a significant impact on housing market conditions
- The value of owner occupier housing finance commitments rose in May while investor demand continued to fall.
- The latest housing credit data shows that investor housing demand is still rising measured on annual growth however, monthly credit growth continues to decelerate with owner occupier credit demand increasing at a faster pace
- On average, investors are now paying an additional 60 basis points on their mortgage interest rates which is likely a major contributor to the slowdown in investor mortgage demand.
- Interstate and overseas migration into NSW and Vic is substantially stronger than all other states and territories adding to housing demand
- The number of dwellings approved for construction increased by 10.9% in June 2017 however, year-on-year approvals are -2.3% lower with house approvals 2.0% higher and unit approvals -6.8% lower.
- Consumer sentiment remains at a level which is slightly below neutral however, negative sentiment has outweighed positive over each of the past eight months
Detailed housing and mortgage market statistics