What are the main real estate indicators doing in March?

Now valued at nearly $3 trillion more than superannuation, Australian listed companies and commercial real estate combined, residential property is indeed the bedrock of Australian household wealth, according to CoreLogic.

With a mix of factors currently influencing an industry that affects millions of Australians, here’s a roundup of what’s happening in the residential property market in March, as put together by CoreLogic:

1. Home values ​​are starting to soften

The research firm reported that home values ​​have risen 20.6% over the past year (0.6% in February) from a recent high of 22.4% in the year to January. This follows the peak of the cycle of 2.8% recorded in March 2021.

2. Highest and lowest growth rates

Brisbane saw the highest annual house value growth rate among the regional and capital city housing markets at 29.7%, while the regional Northern Territory had the lowest value appreciation rate, at 7.1%.

Meanwhile, lower value segments continue to outperform higher value markets in terms of growth. The top quartile of property values ​​in the capital saw an increase of 0.8% in the three months to February, compared to 3.4% for the bottom quartile.

3. Increase in sales volumes

The upward trend in sales volumes over the past year has continued, with sales rising 37.7% to around 650,175 in the 12 months to February.

Additionally, the number of transactions remained high in February, with CoreLogic reporting 57,427 transactions, 46.1% higher than the previous five-year average for February.

4. Increase advertised stock

There is more stock announced on the market than normal, with a 4.8% increase in new listings in the four weeks ending March 6 nationally, compared to the same period in 2021.

Still, the total number of listings is significantly lower than the national average for this time of year, due to high sales volumes, which have seen around 1.2 transactions for every new property. released in recent months.

5. Slightly longer days on the market

Motivated by the boom in the real estate market, more and more sellers have put their homes up for sale. However, as the number of new listings increased, CoreLogic reported that properties were starting to take a little longer to sell.

The median number of days on the market in the three months to February was 30, down from a recent low of 21 days in the three months to December.

6. Refresh levels at an all-time high

Due to buoyant selling activity, discount levels are near historic lows. This is despite CoreLogic reporting a marginal increase of -3.2% in vendor rebates in the combined capital markets.

7. Clearance rates go down

In the four weeks leading up to February 27, resolution rates averaged 72.4%. This figure is down from 78.8% during the same period in 2021. With slower increases in home values, CoreLogic predicted that clearance rates will also see further falls.

8. The value of rents also on the rise

For the rental market, Australian rental values ​​were up 8.7% in the year to February, down from the previous cyclical peak of 9.4% in the year to November.

9. Lower Loan Approvals

Amid a flurry of loan applications and approvals between August 2020 and December 2021 due to extremely low interest rates, single-detached home approvals fell -17.3% in January to just 4,045 units approved – the lowest number since July 2012.

10. Loans at an all-time high

Home loans hit a new high of around $33.7 billion in January, with an all-time high of $11 billion for buyer investors.

Even with those new highs, CoreLogic reported loan growth slowed last month to 2.6% from 4.4% the previous month.

RELATED TERMS

Goods

Property refers to something tangible or intangible over which an individual or business has legal rights or ownership, such as houses, cars, stocks, or bond certificates.

Immovable

Real estate is a type of real property that refers to any land and its permanent improvement or accompanying structures, whether natural or man-made.

About the Author

Noemi Pamintuan-jara

Noemi is a journalist for Smart Property Investment and Real Estate Business. She has extensive experience writing for the business, health and education sectors. Noemi is a contributing author of a summary published by the American Public Health Association and Best Practices in Emergency Pedagogical Methods in Germany. She shares copyright ownership of an instructional video for pharmacists when communicating with deaf patients. She attended De La Salle University where she obtained a double degree in psychology and marketing… Read more

What are the main real estate indicators doing in March?




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Last update: March 14, 2022

Posted: March 15, 2022