New home sales US

US housing markets in stark contrast to Australia's

The latest news to come out of the US housing market is that new home sale volumes have slumped to levels not seen since 1963 and established home sales have fallen to a decade low.  The new home sales figures are considered to be a leading indicator for established home sales market, suggesting the US […]

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Finance commitments renovation

Renovation activity likely to increase

With the rate of property value growth slowing, sales volumes falling and construction of new housing continuing to soften we wouldn’t be surprised to see an increase in the number of homes undergoing renovation over the coming months.  Renovation activity comes in many shapes and sizes and includes; ‘major’ renovations where owners add additional rooms […]

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Rolling quarterly change

Are interest rates too high?

A whole raft of data has been released this week by the Australian Bureau of Statistics (ABS) and most of it has not been particularly positive.  These figures pose the question, are interest rates too high? Unemployment data released this week showed that whilst unemployment remains at low levels it increased from 5.1% in June […]

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RP Data Rismark v ABS

Hedonic regression v Stratified median

The end of the quarter is always interesting because three major residential market indicators are released:  the ABS House Price Index, APM’s composition adjusted median house prices, and the RP Data-Rismark Hedonic Home Value Indices.  The results are generally similar, particularly in longer trend terms, however at times of market transition (like now) the Hedonic […]

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Quarterly results

CPI and Housing

The Consumer Price Index (CPI) for the June quarter was released this week by the Australian Bureau of Statistics (ABS).  CPI, which measures the level of price inflation in the economy, increased by 0.6% over the June quarter, taking annual headline inflation to 3.1% which; slightly above the Reserve Bank of Australia’s (RBA) target range […]

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Weighted avg clearance rate

Auction clearance rates are an important lead indicator

It has been suggested that reporting on auction clearance rates is a waste of time: we want to dispel this myth once and for all. Our estimates show that during 2009 about 57,500 capital city properties were auctioned. Over the same period there were about 317,000 house and unit sales across the combined capital cities. […]

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Confidence in residential property improves in July

Consumer sentiment data published by Westpac and the Melbourne Institute this month shows there has been a bounce back in confidence amongst Australians during July.  The Index gained 11.1% in July and has remained above 100 points (an index value of 100 is where optimists and pessimist are equally weighted) since June last year.  Since […]

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Rental table

Renting costs remain flat in capitals

RP Data recently released their quarterly Rental Review which showed capital city rental markets have remained surprisingly flat during 2010. The weakness in the rental market was widely anticipated, with more first home buyers becoming active it was logical that some heat would come out of rents (most first home buyers were previously renters). On […]

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Approvals

Development finance may be starting to flow more freely

Business lending has moved back into the black during May, with business credit growing by 0.4 per cent based on the latest stats issued by the Reserve Bank (see here for details of their release).  Lending to businesses started to show some tentative growth in February this year after consistent month on month declines that […]

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Annual rate of population growth

Housing demand appears to have peaked with population growth slowing across Australia.

Australia’s dramatic rate of population growth appears to have peaked, with the number of overseas migrants tanking in December.  Total population growth was down 18% in the December quarter of 2009 compared with December 2008. Net overseas migrants are down significantly since peaking in the March quarter last year at 98,140.  In the December quarter […]

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