The last Census showed that across Australia we have ample bedrooms to cater to our population yet the lack of new housing supply over recent years along with increasing demand for homes has resulted in increases in home values. Particularly in Sydney and Melbourne the escalation in home values over... Show More
With the release of the building activity data earlier this week I am looking at the relationship between dwelling approvals, commencements and completions. Although we are seeing a record high number of approvals the heightened level of unit approvals means that ultimately less of these approvals will end up completed.... Show More
The Australian Bureau of Statistics (ABS) released housing finance data for February 2015 earlier today. The results suggested to me that perhaps; after many warnings, the exuberance from the investor segment of the market is starting to slow. Keep in mind that investor borrowing remains at near record highs however,... Show More
Regional population growth data was recently released by the Australian Bureau of Statistics (ABS) for the year to June 2014. By combining this data over time with dwelling approvals over time we can derive localised information to approximate the extent of oversupply and undersupply in the capital city housing markets.... Show More
Although the number of dwelling approvals fell by -3.2% in February 2015, the 18,768 approvals over the month was the second highest monthly number on record. there is clearly a new approvals boom taking place but it is not without its potential risks, read more here: http://blog.corelogic.com.au/2015/04/dwelling-approvals-fall-to-the-second-highest-month-on-record-in-february/ Show More
Last week was a bumper week for auctions across Australia with a preliminary 3,476 auctions, of which CoreLogic RP Data has captured 2,557 results so far. The national auction clearance rate was 77.5% with Sydney (84.6%) and Melbourne (78.5%) recording higher clearance rates. It is now the 8th consecutive week... Show More
The ABS released its demographic statistics for the Sep-14 quarter. The increase in population over the past year was actually the lowest increase in national population over a year since the 12 months to December 2011. With population growth now showing a consistent slowdown since the end of 2012 and... Show More
The Reserve Bank (RBA) released its bi-annual Financial Stability Review (FSR) earlier today. The document provides a guide as to the RBA’s thoughts on the overall economy and potential risks. As you’d expect, the residential housing market features heavily in their assessment of financial stability and I will delve into... Show More
Although overall housing finance commitments fell by -0.6% in January, demand for mortgages remains strong. Most interesting, was the proportion of total lending which went to investors, it hit a record high in January as this segment of the market continues to surge. http://blog.corelogic.com.au/2015/03/housing-finance-eases-january-proportion-lending-investors-hits-time-high/ Show More
Yesterday the ABS released building approvals data for January 2015. The data showed a record number of monthly approvals but there are now growing signs of an oversupply of new unit stock in inner city Melbourne and Brisbane. http://blog.corelogic.com.au/2015/03/dwelling-approvals-reach-new-record-highs-january-2015/ Show More
I get the feeling it is more than just jawboning. As you say its not just about this cycle but also future cycles. My concern is the sort of returns available from residential property are still better than most other asset classes will these tools really change anything? Banks still need to lend and for investors would a higher cost be enough of a deterrent?
They have remained reasonably consistent however, in response to the question about the significant correction, the 68% who felt it was exposed was the greatest % recorded (this was the 4th time we have asked this question).
As you say, it is one week of data so I don't want to get too carried away. I think the most likely reason is that vendors are getting too carried away with their expectations. Our data shows the rate of growth is slowing across both cities and vendors often take some time to adjust to the changing conditions. We have also seen a reasonably strong increase in property listings over recent while transactions seem to be softening so maybe a little less demand but more supply is starting to impact the market too. A few more weeks and we should have an idea of exactly what is going on (should the trend continue).