With the national housing market having experienced more than four years of ongoing value rises, affordability in certain areas is deteriorating and sales that were once considered to be at the top end of the market are now becoming more common.
Over the month there were $32.3 billion in housing finance commitments which is 1.0% higher over the past month. Although the value of housing finance commitments increased in May 2016, they are now -4.6% lower than their August 2015 peak of $33.8 billion worth of commitments.
Building approvals data for May 2016 was released earlier this week by the Australian Bureau of Statistics (ABS). According to the data there were 19,276 dwellings approved for construction over the month. The 19,276 approvals in May 2016 the lowest number of monthly approvals in four months.
The vast majority of property owners who sold their home in the December 2015 quarter sold at in excess of their previous purchase price according the latest CoreLogic RP Data quarterly Pain and Gain Report.
The release today of the monthly CoreLogic RP Data Rent Review results for February confirm that over the coming months rental rates could begin to fall on an annual basis due to additional new rental supply entering the market.
Dwelling values across Australia’s capital cities were 0.9% higher in January driven partially by a rebound in Sydney and Melbourne.
The hottest housing markets in the nation, Sydney and Melbourne, have continued to see an easing in the rate of capital gain over the month of October, however values continued to show a modest rise of 0.3 per cent, and 0.6 per cent respectively across Australia’s two largest capital cities over the month.
The capital city housing market performance was diverse over the first month of Spring, with Sydney value growth flattening and dwelling values down across three of the capital cities according to the September CoreLogic RP Data Home Value Index results out today.
Melbourne and Sydney continued to set a rapid pace for capital gains in July, pushing the CoreLogic RP Data Home Value Index 2.8% higher over the month and 11.1% higher over the past year.