️ Highlights:
1. The combined value of residential real estate in Australia reached $10.2 trillion in October, showing a slight increase from the previous month.
2. National home values rose by 2.3% in the three months leading up to October, although this was a slight decrease from the previous quarter.
3. Perth experienced the highest growth rate among capital city markets, with a 4.6% increase in home values over the three-month period. Darwin and Hobart had the lowest growth rates at 0.3%.
4. The number of property sales in October was lower than the historic five-year average for that month, with a total of 40,993 sales recorded nationally.
5. The median time it takes to sell a property increased slightly to 30 days nationally, and vendors are now offering less of a discount on their properties compared to previous years. The median vendor discount was -3.6% in the three months leading up to October.
A Comprehensive Analysis of Australia’s Residential Property Market
CoreLogic’s latest Monthly Housing Chart Pack for November 2023 offers an in-depth look into the current state and trends of the Australian residential property market. This report is a crucial resource for understanding the dynamics of real estate in Australia, providing valuable insights for investors, homeowners, and industry professionals.
Key Highlights of the Report
- Rising Value of Residential Real Estate: The combined value of residential real estate in Australia has seen a significant increase, reaching $10.2 trillion at the end of October 2023, up from $10.1 trillion in the previous month.
- National Home Values and Growth Rates: National home values rose by 2.3% in the three months leading up to October, showing a slight easing from the 3.1% growth in the June quarter. Among the capital city markets, Perth recorded the highest three-month growth rate in October at 4.6%, while Darwin and Hobart experienced the lowest at 0.3%.
- Sales Volumes and Market Dynamics: There were approximately 40,993 sales nationally in October, compared to the five-year average of 44,813 for the same month. The median days on the market for properties increased slightly, with the national median sitting at 30 days. The median vendor discount nationally was 3.6% in the three months to October, indicating a slight decrease in discounting compared to the end of the previous year.
- Listings and Clearance Rates: New listings totaled 43,421 nationally in the four weeks leading up to November 5, showing a 10.2% increase compared to the same period last year. Total listings were observed at 155,478 over the same four weeks, a 4.2% increase from a month ago. The combined capital cities clearance rate averaged 65% in the four weeks to October 29.
- Rent Values and Dwelling Approvals: Australian rent values increased by 0.7% in October, with an annual increase of 8.1%. Dwelling approvals fell by 4.6% in September, continuing to trend below decade averages.
- Housing Finance Trends: The value of new housing finance secured rose by 0.6% in September, following a 2.4% increase in August. Since February, growth in secured housing finance for investors was 16.0%, compared to 6.1% in owner-occupier lending.
Implications for the Australian Housing Market
The data presented in CoreLogic’s Monthly Housing Chart Pack for November 2023 paints a detailed picture of the Australian housing market. The increase in the value of residential real estate and the growth in home values across various cities reflect a robust market. However, the slight increase in the median days on the market and the rise in new listings indicate a gradual shift in market dynamics.
The steady clearance rates and the increase in rent values suggest continued demand in the housing market, despite the challenges in dwelling approvals. The trends in housing finance also highlight a growing interest among investors, which could have long-term implications for the market.
Conclusion: Navigating the Evolving Real Estate Landscape
As the Australian housing market continues to evolve, staying informed with the latest data and trends is crucial for making well-informed decisions. CoreLogic’s Monthly Housing Chart Pack offers valuable insights into these trends, helping stakeholders navigate the complexities of the real estate market.