RP Datas measure of real estate professional pre-listing activity, the Market Activity Index, has remained relatively flat once again over the last week. With the last week of October upon us, it certainly seems as if this years spring selling season is going to have significantly less activity than last year.
Industry Market Wrap
The Australian Bureau of Statistics (ABS) this week released the September 2010 quarter Consumer Price Index (CPI) results which were generally below expectations. The all groups indicator was recorded at 0.7% for the quarter (2.8% pa). Importantly, the Reserve Banks preferred measure, the weighted median and trimmed mean, recorded an increase of just 0.5% and 0.6% respectively for the quarter placing underlying inflation right in the middle of the RBAs target zone at 2.4% over the year (the Reserve Bank of Australia has a target rate for inflation of between 2% and 3%). In fact, on an annual basis the trimmed mean has not been this low since December 2005 and the weighted median since March 2001. With much of the economic data remaining positive the RBA may still be tempted to increase interest rates sooner rather than later however, given that their preferred measures of inflation are well within their target range we expect they will choose to leave official interest rates unchanged on Melbourne Cup Day.
The RP Data-Rismark Home Value Index was released today. The results showed flat market conditions nationally. Given the continued weakness in housing finance, lower levels of auction clearance rates and above average number of listings. It has become quite obvious that growth in the market is stalling and we can expect similar conditions at least for the remainder of 2010. We also expect that levels of vendor discounting and the average time it takes to sell a property will increase as the softer market conditions prevail.
Advertised Stock on the Market Despite the flat result for the Market Activity Index, the number of newly advertised properties for sale surged last week, up 8.2%. The total number of newly advertised properties for sale is 21.1% above the 12 month average and 18.9% higher than at the same time last year. With new advertisements increasing there has also been an increase in the total number of properties advertised for sale, up 2.9% for the week, they are now 10.5% higher than the 12 month average. The continued increase in new listings and the resulting increases to total listings are a little worrisome at a time when property value growth is flat, national auction clearance rates are consistently below 60% and the average time on market and level of vendor discounting is increasing. Overall it suggests that buyers will increasingly need to offer a point of difference (in terms of both the property and the pricing) if they wish to sell.
With fewer houses on the market this Spring, it's even more important to find out what exactly is happening on your patch. Make sure you have subscribed to RP Data's On the Market® service. Click hereor phone 1300 734 318 for a free 2 week trial.
Latest National Auction Clearance Rates Across the combined capital cities the weighted average auction clearance rate was recorded at 56.9% last week which coincided with the busiest week for auctions in more than two years. Last week there were almost 2,140 capital city auctions, currently there are 2,003 capital city auctions planned for this week. This level of auction activity indicates that volumes remain healthy despite the fact that clearance rates arent particularly strong. In Melbourne, clearance rates increased to 62.2% from 61.8% and Sydneys clearance rate fell from 56.5% to 56.1%.
Our auction results change weekly - want to know the auction results for your local area? Log into rpdata.com and go the Auction Results panel on the top right corner of the home page.
Number of Properties Advertised for Rent The number of newly advertised rental properties increased by 1.6% last week and is 2.2% higher than the 12 month average. With the increase in the number of new rental advertisements the total number of listings also increased, up 0.5% for the week. Despite the increase, total listings are -1.7% lower than they were a month ago, indicative of the tightening rental market conditions.
Affordability improves as Australian capital city dwelling values flat-line
According to the latest RP Data-Rismark Hedonic Home Value Index, in September capital city home values were mostly unchanged (+0.1 per cent seasonally adjusted / +0.4 per cent unadjusted) and have not risen since May. The weaker Rest of State markets fell -0.9 per cent (seasonally adjusted) and -1.5 per cent (unadjusted) in September and have not increased since Dec 2009.
As predicted by Rismark and RP Data since the start of the year, Australias housing market has flat-lined in the second half of 2010. The monthly RP Data-Rismark Hedonic Home Value Index was the first benchmark to report a big shift in housing conditions with a substantial fall in Australian dwelling values in the month of June. This followed annualised double-digit capital growth since the start of 2009. Other house price measures are now starting to fall into line.
Regional housing markets located away from the coastline have mostly shown a positive performance with home prices rising over the last twelve months; a trend that is in stark contrast to most of the tourism driven coastal markets where price growth has largely been absent post GFC.
The RP Data-Rismark Home Value Index showed that over the year to July 2010 capital city property values increased by 9.5%. House values increased by 9.3% and unit values increased by 10.2%.
Comm Bank iPhone App now includes property value estimates
When searching property records using the next update of the Comm Bank Property Guide iPhone App, users will be able to immediately find the approximate value of any property in Australia.
Using RP Datas AutoVal system, the App will offer an estimated value range for any property with enough comparable sale records for the area.
Once the value range has been established, the App can search the local area for an RP Powered Agent, so that users can recieve advice from a local expert.
Developed by Comm Bank in conjunction with RP Data and realestate.com.au, the App has had more than 90,500 downloads since its initial release at the end of July 2010.
The App is RP Datas first foray into the Mobile Application world, and the second is on its way. We are building an iPhone App for Professionals to be released at the end of November, so that you will always be considered the local expert and to offer a competitive edge in the marketplace. If youre interested in having access to the Professional version of RP Data on your iPhone or iPad, pre-register now!
Commercial: Balaclava bakery bought
A bakery and café property in Balaclava, Victoria, has been sold at auction by agents of Gross Waddell.
The auction of 175 Carlisle Street, Balaclava, attracted a crowd of 80 and interest from five keen bidders.
Gross Waddell agents, Tamara and Michael Gross, marketed the property, which achieved a final selling price of $1.915 million.
Erected on the 154 sqm site is a two storey brick building with a total building area of approximately 193 sqm.
The current lease to Baked at a net rate of $75,512 per annum gave the sale a yield of approximately 3.9%.
It is understood that the lease is for a term of three years and six months, with three three-year options to extend.
The Comparative Market Analysis (CMA) reports created using RP Professional can be quickly and easily branded and customised to differentiate your business. Using our straightforward tools, you can easily create and tailor a report to suit your business in seconds rather than minutes.
When you generate a CMA for an area, you can filter the results to be included using the Refine Search and Advanced Filter tools to the left. After advancing through the steps and selecting Sold properties, On The Market properties and Market Comparisons, you will be able to preview your CMA.
In the area previously occupied by the Refine Search bar, you will find the individual components of your CMA. These can be dragged into any order and if any of them are not relevant to the report you wish to create, they may be hidden.
You can focus on sales by only including sections such as:
Sold Properties
Recent Median
Sales Prices
Sales Per Annum
Sales by Price
Or create an in-depth profile of an area with:
Household
Age Sex Ratio
Household Income
There are many more sections that can be included to add value to your report, or removed to tailor the information to solely what your clients require. For further customisation, click the Edit Panel tab at the top right corner of any of the panels in the CMA to choose which elements of the panel are to be included. To learn how to best customise your CMAs to add value to your business, check out our range of Training Videosor download our Getting Started Guide.
Login with the same Personalised Login and Password that you currently use for
RP Data. There is no extra cost for
RP Professsional, which will eventually replace RP Classic.
If you have any questions, please phone 1300 734 318 or email support@rpdata.com
Blog: Buyers gaining leverage over sellers
RP Data have been suggesting that the Australian housing market is likely to show, at best, flat growth in property values over the remainder of 2010 which will in-turn result in increasing levels of vendor discounting and a longer time of sale.
By joining the RP Data Facebook group, you'll be able to share your predictions regarding upcoming developments in the Australian property market with industry professionals.
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The auction of 175 Carlisle Street, Balaclava, attracted a crowd of 80 and interest from five keen bidders.
