While Sydney and Melbourne have grabbed most of the attention for the strong growth in dwelling values over recent years and the value falls more recently, Hobart has actually been the best performed capital city market in terms of value growth over recent years.
Housing finance data for June 2018 was released earlier this week by the Australian Bureau of Statistics (ABS). The data showed a continuation of the slowing of demand for housing finance with the slowdown being largely driven by investors.
The combined effect of low rental yields and declining dwelling values has resulted in a rapid reduction in overall returns from housing over the past year.
This week, 1,320 capital city auctions are currently being tracked by CoreLogic; remaining relatively steady on last week’s final result which saw 1,324 auctions held.
The decision to keep the official interest rate on hold marks the two year anniversary of the last change to the cash rate by the RBA; the longest period of interest rate stability on record.
Over the second quarter of 2018, national dwelling values have declined by -0.5%, matching the -0.5% fall in values over the March quarter.
The first week of August sees just over 1,300 homes taken to auction across the combined capital cities.
With dwelling values now declining across the nation, in this week’s Property Pulse we take a look at inflation-adjusted (or real) dwelling value changes to the June 2018 quarter.
Although the cash rate hasn’t been adjusted for almost two years, the rhetoric from the RBA continues to be that the next move in rates is likely to be up rather than down.
The combined capital cities are expected to see a lower volume of auctions this week with CoreLogic currently tracking 1,224 auctions, down from 1,536 last week and 1,857 over the same week last year.
The CoreLogic July home value results out today confirmed that national dwelling values continued their weak run, with both capital city and regional dwelling values trending lower over the past three months.