At The Property Warehouse, we like to keep you updated with all the latest reports on the market, so you can be assured you have the right information at hand, to make a decision about purchasing an investment property.
The following reports come from CoreLogic, who specialise in providing analytics on the Australian market. An interesting point to note is there are opportunities for investors when you look beyond Sydney and Melbourne.
Properties in Sydney and Melbourne are selling faster
Homes continue to sell rapidly, even while property values have increased for almost the last 5 years.
The average time a property stays on the market, averaged across all the capital cities, is up 3 days from the same time last year, at 39 days.
Deman for housing remains strong, while at the same time there are relatively low stock levels. According to CoreLogic, “while these conditions persist it is difficult to see how home values in Sydney and Melbourne in particular, won’t continue to increase.”
You can view the full report by clicking here.
Auction clearance rates remain strong in Spring
While traditionally auction clearance rates have fallen in Spring, there is no evidence this is the case in 2016.
The latest data collected by CoreLogic is reported by them as stating, “On a weekly basis throughout 2016, auction clearance rates across the combined capital cities have been recorded at an average of 70.9%. If we compare this to the previous years, the average weekly auction clearance rates were recorded at: 48.0% in 2011, 50.4% in 2012, 66.2% in 2013, 67.8% in 2014 and 72.0% in 2015.”
The combined capital city clearance rate remains above 70%.
Capital cities outside of Sydney and Melbourne are becoming more attractive investment opportunities
Investment activity continues to rise on the back of the last interest rate cut. In Sydney, there is a growing disconnect between the rise in household incomes (25% over the last five years) and housing prices (up 62% over the same period), which is making it increasingly difficult to enter this local market. While Melbourne is in a similar situation, according to CoreLogic, “investments in other capital cities are becoming more attractive because of a healthier yield and the fact that they are at a much earlier stage of the housing market cycle.”
View the latest summary report below.