A Typical Capital City Home Increased in Value by About $50,000 Last Financial Year – CoreLogic RP Data

CoreLogic RP Data data for June confirms the housing market remained strong.  In addition, Based on the current median dwelling price of $565,000, the 9.8% increase means the typical capital city home has increased in value by about $50,000 over the year. At 9.8% the rate of growth across the 2014-15 financial year, was virtually on par with the previous year where dwelling values were 10.1% higher. In June:

Home values increased across most capital cities and the combined capital cities in June 2015

  • Home values increased by 2.1% across the combined capital cities in June 2015 and rose across all cities except for Perth and Darwin.
  • Home values have increased by 2.0% over the three months to June 2015 with values lower in Perth and Darwin.
  • On an annual basis, combined capital city home values have increased by 9.8% which is their fastest annual rate of growth since August 2014.
  • The value growth performance has been extremely varied over the past year. Sydney (16.2%) has been much stronger than other capital cities while Melbourne (10.2%) has recorded moderate growth while increases have been minimal in Brisbane (3.4%), Adelaide (4.5%), Hobart (0.9%) and Canberra (2.4%). Home values have fallen over the past year in Perth (-0.9%) and Darwin (-2.9%).
  • The annual home value growth in Sydney and Melbourne is now at its fastest pace since August of last year.

Sales activity across the country is slightly lower than at the same time last year

  • Over the 12 months to March 2015 there were 357,972 houses and 140,246 units sold across the country.
  • House sales are 2.1% higher over the year compared to a -8.0% fall in unit sales.
  • It should be noted that off-the-plan sales aren’t counted until they settle so we would expect the unit figure to be revised much higher over the coming months and years.

 Vendor metrics indicate strong housing market conditions

  • Auction volumes have surged since the RBA cut interest rate in February and again in May clearance rates have also recorded a sharp rise but have eased slightly from their recent record high levels.
  • Discounting levels remain low while time on market is also at a near record low, in fact Sydney’s time on market is equal to its record low and in Melbourne homes are selling at their fastest rate on record.

 The amount of homes for sale is much lower than at the same time last year

  • New listings are 11.3% higher than a year ago nationally and 5.5% higher across the capital cities.
  • Nationally, total listings are -3.9% lower than a year ago and total listings are -6.5% lower.
  • Sydney has less stock listed for sale (16,614) than each of Melbourne (26,225), Brisbane (18,260) and Perth (20,198).
  • The total number of listings in Sydney is -19.1% lower than at the same time last year.

 Mortgage demand has rebounded strongly following the Christmas / New Year period

  • The RP Data Mortgage Index (RMI) shows that mortgage demand eased a little in June 2015.
  • ABS housing finance data to April shows the market growth continues to be driven by investors and owner occupier refinances.
  • Housing credit data shows that over the past year investor housing credit has increased by 10.4% which is in excess of the cap targeted by APRA.

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

One thought on “A Typical Capital City Home Increased in Value by About $50,000 Last Financial Year – CoreLogic RP Data”

  1. I understand most real estate price data relate to capital cities but what about publishing information on housing outside these areas?
    There are large regional centres that just get ignored in these reports. Surely information is available?

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