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Industry Market Wrap
The RP Data-Rismark Home Value Index results for October were released this week and on a seasonally adjusted basis, capital city home values fell by -0.5%. Property values are now -4.0% lower over the past 12 months and have fallen over each month of 2011. On an annual basis, the magnitude of the value falls is greatest in Brisbane (-8.0%) and Melbourne (-5.4%). On the other hand, value declines were lowest in Sydney and Canberra (-1.1%). Given this data was for October, next month's release of November results will provide the first indication of whether the 25 basis point cut to interest rates has provided any improvement to market conditions.
The RBA also released their private sector credit figures this week which showed growth remains subdued. Total credit increased by just 0.4% over
October and is up by just 3.4% over the year. Housing credit showed the greatest increase over the month, up by 0.5% whereas business credit grew by
0.3% while personal credit fell by -0.2%. Both owner occupier and investor housing credit grew by 0.5% over the month however, over the year owner
occupier housing credit (6.0%) has recorded stronger growth than investor housing credit (4.6%).
The ABS also released private new capital expenditure and expected expenditure data this week. The data showed that investment was strong in the
September quarter with new business investment in buildings or equipment increasing by 12.3% in the September quarter, mining spending rose by
22.1%, manufacturing spending rose by 9.8% and other investment increased by 4.1%. The data highlighted that firms are now more willing to invest
capital on important projects.
Latest National Auction Clearance Rates
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The weighted average capital city auction clearance rate increased from 45.8% the previous week to 47.5% last week. Last week was also the busiest for auctions during this year's spring season with 2,139 auctions taking place. Despite the large volume, clearance rates remained below 50% for the 21st consecutive week. Melbournes auction clearance rate increased to 52.1% last week from 45.9% the previous week. This marked the first time in eight weeks Melbourne clearance rates broke the 50% barrier. In Sydney, auction clearance rates fell from 51.6% the previous week to 50.0% last week.
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Advertised Stock on the Market
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The number of newly advertised properties for sale increased again over the past week, the third successive week in which new listings have risen. Although new listings have been increasing, they remain at low levels, -10.9% below last year nationally and -16.0% lower across the combined capital cities. With new listings increasing, total listings have also risen to record high levels. RP Data is currently tracking 318,575 properties for sale nationwide and 159,173 across the capital cities. The number of homes for sale nationally is currently 28.5% higher than at the same time last year and 25.5% higher across the combined capital cities. As the data shows, there is a relatively even split between the number of properties for sale in capital cities and in regional markets.
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Number of Properties Advertised for Rent
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The number of new rental listings has eased slightly over the past two weeks. The number of newly advertised rental properties was 12.8% higher than the same time last year nationally and 10.2% higher across the capitals. Total rental listings also fell over the week however; they are now tracking 10.3% higher across the nation and 10.1% higher across the capital cities than they were at the same time last year. Despite a greater number of properties available for rent than at the same time last year, recent data shows rental growth is stronger now than it was a year ago.
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