With record-high values expected across Australian dwellings in a few months’ time, 2020 will see the fastest market recovery on record with respect to the length of the downswing. And it’s being led by owner-occupiers.
Capital city auction activity ramped up after the seasonal slowdown, with 1,122 homes taken to auction this week, with volumes almost doubling on last week’s 625 auctions held.
While the median property value provides a useful reference point for the ‘typical’ home value in an area, buyers on a tight budget might find it more practical to narrow down their property search by examining lower quartile values.
The 2020 auction market is now in swing, with over 1,000 capital city homes scheduled to go under the hammer this week. CoreLogic are currently tracking an additional 448 auctions compared to final figures last week (625).
Australia’s housing value rebound continued into 2020 with the CoreLogic national home value index up by 0.9% over the first month of the year. This now takes the annual growth rate to 4.1%; the fastest pace of growth for a twelve month period since December 2017.
CoreLogic auction activity analysis found that over the 3 months to December 2019, the combined capital cities clearance rate came in at 70.3 per cent from 26,923 auctions.
Almost nine in ten (87.4 per cent) property resales over the September 2019 quarter sold for more than their previous price, delivering a gross profit of $18.7 billion for resellers across Australia.
Earlier this month, the ABS released detailed dwelling approval data to November 2019. Breaking down approved dwellings by local government area (LGA) highlights a concentration of new development in south-east regional and metropolitan centres, and a relatively low level of medium density approvals.
The first home loan deposit scheme (FHLDS) commenced 1st of January 2020. It is a leg-up over the deposit hurdle for first home buyers (FHB) struggling to accumulate a sizeable deposit, providing eligible Australians the opportunity to buy their first home with a deposit of at least 5% of the home’s value.
Dwelling values rose by 1.1% over the month of December and by 4.0% over the quarter to finish out 2019 on a positive note according to the CoreLogic national home value index.
There were 2,750 homes taken to auction across the combined capital cities this week, with volumes down by -5.6% on last week’s 2,912 auctions; the second busiest week of 2019.
Although lagged, the ABS residential property price index provides a reference point and benchmark for the more timely private sector measures of house price growth.