Industry Market Wrap Up
The rpdata-Rismark Home Value Index results for March 2013 were released earlier this week. The results showed that across the combined capital cities, home values increased by 1.3% with not one capital city recording a fall in values over the month. Over the first quarter of 2013, home values have increased by 2.8% and values are 2.4% higher than they were 12 months ago. Hobart values have fallen by -1.2% over the past year but in every other capital city, home values are now higher than they were 12 months ago. Across the combined capital cities home values remain -3.0% lower than they were at their peak with values having increased by 4.7% since their recent trough. Sydney home values have now eclipsed their previous record high and as at March 2013 were 0.1% higher.
The Reserve Bank (RBA) held their April Board Meeting earlier this week and at the meeting they decided to keep official interest rates on hold at 3.0%. Official interest rates have now been on hold since December 2012, the longest period of interest rate stability since October 2011 when they had been held at 4.75% since November 2010. In the Governor’s Statement following the meeting he noted, in relation to household consumption and dwelling investment the following: ‘Recent information suggests that moderate growth in private consumption spending is occurring, though a return to the very strong growth of some years ago is unlikely. While the near-term outlook for investment outside the resources sector is relatively subdued, a modest increase is likely to begin over the next year. Dwelling investment is slowly increasing, with rising dwelling prices and high rental yields. Exports of natural resources are strengthening. Public spending, in contrast, is forecast to be constrained.’ It will be interesting to see once the Minutes become available later this month what, if any, debate there was about the 2.8% rise in capital city home values over the first quarter of the year.
Auction activity was limited last week due to the Easter long weekend across the country. Last week there were just 554 total auctions, down from 1,860 over the previous week. Across the 554 auctions, the combined capital city auction clearance rate was recorded at 58.7% down from 64.4% over the previous week. RP Data collected results for approximately 78% of all capital city auctions which took place last week with many undisclosed. Auction clearance rates across the nation’s largest auction market, Melbourne, increased from 66.4% over the previous week to 76.4%. In Sydney, clearance rates fell from 68.6% the previous week to 58.2% last week. It was the lowest Sydney auction clearance rate in seven weeks. Auction activity is set to increase over the week, with our figures indicating that there will be 1,180 capital city auctions taking place this week.
The number of new listings being added to the market fell by -3.6% over last week. 45,284 new listings were added to the market nationally, with 26,523 of these located in a capital city.
Although the number of new listings fell, there has been a further increase in the total number of properties available for sale. There were 292,405 homes advertised for sale over the past four weeks. Across the combined capital cities, there were 132,182 homes available for sale, 45% of the total stock available for sale.
Total listings nationally are now 3.0% lower than they were at the same time last year. Across the capital cities, total listings are 0.1% lower than they were a year ago.
Agent Advice Team