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July Property Wrap

Ray Fayad - Monday, July 18, 2011

Stock on the Market

Nationally new listings are now 21.5% lower than the 12 months ago. NT and ACT bucked the Capital City trend with increases of 4% & 14.2% respectively. Total listings are still at elevated levels up 24.6% nationally from 12 months ago. It is important to remember that 12 months ago listing began to increase driven by as property prices increases and higher clearance rates underpinned by generous First Home Buyers Grants and other government incentives.  

Auction Clearance Rates

Nationally Auction Clearance Rates fell to 47.2%. Sydney, Melbourne & Canberra recorded Clearance Rates of 50.4% to 55.2%, Adelaide 41.5% and Brisbane, Perth, NT and Tasmania all recording rates below 25%. Nationally home values have fallen 2.7% in 2011.

Rental Market

New rental listing fell 19.4% & total listings fell 7% nationally than 12 months earlier. SA & NT recorded rises. The rental market remains tight with a slow release of new product into the market and steady demand. Rental rates have increased only 2.9% over the last year with national median rents at $385 per week for houses and $380 per week for units.

Who’s Buying Property?

The RBA’s Financial Aggregates Report pointed to the slowest growth in Housing credit in 34 years.  Australian Bureau of Statistics (ABS) May 2011 Housing Finance Data released last week showed that The total value of owner occupied housing commitments rose 0.1% (up $9m) in May 2011, following a fall of 0.2% in April 2011. Rises were recorded in commitments for the purchase of established dwellings (up $7m, 0.1%) and the construction of dwellings (up $6m, 0.4%), while the purchase of new dwellings fell (down $3m, 0.4%). The seasonally adjusted series for the value of owner occupied commitments rose 2.2% in May 2011.

First Home Buyers accounted for 15.4% in May slightly down from 15.8% recorded in April & 16.0% in March but still an improvement on the 14.9% recorded in February the lowest since June 2004.

The total value of investment housing commitments fell 0.4% (down $27m) in May 2011 compared with April 2011, the thirteenth consecutive monthly fall. Falls were recorded in commitments for the purchase of dwellings by individuals for rent or resale (down $23m, 0.4%), the construction of dwellings for rent or resale (down $2m, 0.5%) and the purchase of dwellings by others for rent or resale (down $2m, 0.3%). The value of investment housing commitments seasonally adjusted rose 4.4% in May 2011.

As long as consumers remain caution property prices are to remain subdued and first home buyers are likely to remain quiet. Rental growth barely keeping pace with inflation and higher interest rate environment, investors will remain in the sidelines.   

 

Source: RP Data





 



 


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