CoreLogic provides its quarterly property market update across Australia – see how your state or region has been performing.
After a period of fast paced growth in a number of our cities, things are starting to change. Find out what’s really happening to property values in Australia’s cities.
Capital city dwelling values edged a further 0.2% higher in November, according to the CoreLogic home value index.
Combined capital city home values have increased by 9.1% over the first 10 months of this year, compared to a slightly higher 9.5% increase over the same period in 2015. Perth and Darwin are the only two cities in which home values are lower over the first 10 months of this year.
There are a few ways to measure the fit between buyers and sellers. One is to examine advertised stock levels in the market. If total listings numbers are rising, it’s a good sign that homes are taking longer to sell and buyers may be empowered. If total listing numbers are low, this could imply short supply and sellers won’t have to budge too much on their prices.
Recently released data from the Foreign Investment Review Board (FIRB) which covers the 2014/15 financial year revealed that demand from overseas buyers increased substantially.
Coastal markets and regions associated with tourism and lifestyle properties are generally seeing an improvement in their housing market conditions after a slump in values and buyer demand between 2008 and 2014.
Rising inventory levels generally imply a lower rate of absorption or sale in the market, meaning more homes are being added to the market than are selling.
If the final quarter of 2015 is anything to go by, the housing market in 2016 is likely to see softer conditions and potentially some improvement in affordability as values slip lower after three and a half years of strong growth.
As investment activity slows, what opportunity does that present for home buyers?