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Monthly market roundup: June 2016

Not good at crunching numbers? Each month CoreLogic RP Data does it for you with its Housing Market and Economic Update – a snapshot of the Australian property markets as well as the economic and demographic trends that affect them. Here are the top 6 takeouts from the June 2016 report.

1. Combined home values up by 1.6% in May

The report revealed that capital city prices were up by 1.6% overall in May, and were 3.6% higher in the three months to May.

Perth and Hobart were the only two capitals to see values fall during the month.

The individual changes for each capital over the last 12 months were: 13.1% in Sydney, 13.9% in Melbourne, 7.1% in Brisbane, 3.9% in Adelaide, -4.2% in Perth, 6.1% in Hobart, -3.5% in Darwin and 5.7% in Canberra.

2. Number of sales trended lower

In the 12 months to May, national house sales were down by -4.1% and unit sales were down -10.3%.

Across the capital cities, in the 12 months to May, house sales were -6.4% lower and unit sales were down -12.5%. While the majority of capital cities saw sale numbers trending down, there were signs that Perth and Hobart sales volumes are stabilising.

3. Weakness in the rental market

The rental rate for houses nationwide fell -0.7% over the past year (the largest fall on record, according to CoreLogic RP Data) while rents for units increased by 1.6% over the same period. However, Perth and Darwin have seen falls in rent rates in both categories.

The city with the highest increase in rental rate was Hobart, with a 3.7% surge over the past year. No other capital recorded growth over 3%.

Record lows have been seen in gross rental yields for both houses (3.3%) and units (4.2%).

4. House selling time increased slightly; discounting levels fell for units

On average, a house in a capital city sat on the market for 44 days in May, compared to 42 days 12 months ago.  Units in capitals took 42 days, the same as one year ago.

Discounting was at 6% for houses overall, and 5.3% for units, compared to 5.9% for houses and 5.8% for units 12 months ago.

5. New and total listings higher than a year ago

In May, the number of new listings was 1.9% higher than 12 months prior overall, and 1.3% higher across the combined capitals.

Total listings were 1.8% higher than a year ago nationally, and saw a 10.4% increase across the combined capital cities.

6. Economic data remained mixed

There are a number of trends that are affecting the housing markets across the country.

Investor lending has seen a large decline, and new lending to both investors and owner occupiers also fell but not as far.

Population growth continued to slow over the September 2015 quarter; dwelling approvals increased in April and although they remain very high, they are below their peak.

Consumer sentiment rose in May after falling to the lowest level in seven months in April; it currently sits at its highest point since January 2014.

Unemployment was 5.7% in May and is at its lowest since September 2013.

View the full report at http://www.corelogic.com.au/reports/chart-pack.html

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