Housing Market Review December 2015
Housing Market Review December 2015 – we see the housing market start to turn as major growth cities of Sydney and Melbourne record home value decreases for the first time in 3 years. Australia wide capital growth is down by 1.5% for the month and auction clearance rates have dramatically reduced. Across the country, residential real estate still accounts for more than half of Australia’s wealth with an increase to $6.3 Trillion. Other major factors in the countries wealth are Australian superannuation at $2.3 Trillion, Australian listed stocks which dropped down to $1.5 Trillion and Commercial Real Estate at $0.7 Trillion.
Average house values across Australia
In November 2015 average house values across Australia decreased by 1.5%. For the 12 months up to November 2015, average property prices across Australia increased by 8.7% which is down from previous months. Change in capital city home values for November are as follows:
Sydney down 1.4%
Melbourne down 3.5%
Brisbane up 0.6%
Hobart down 2.4%
Adelaide up 0.7%
Perth up 0.3%
Darwin down 1.3%
Nationally 495,054 dwellings were sold for the 12 months from August 2014 to September 2015. The number of houses sold for the year was up by 2.0% while the number of units sold was down by 9%.
Median dwelling prices
The Sydney housing market still has the highest median dwelling price with houses at an average of $950,000 and units at $675,000. Other major Australian Cities are as follows
Melbourne houses $675,000 units $503,000
Brisbane houses $495,000 units $400,000
Hobart $355,000 units $291,000
Adelaide $435,000 units $342,000
Perth $515,000 units $415,000
Darwin $575,000 units $511,000
Canberra $625,000 units $422,000
Gross Rental Yields
Gross Rental Yields across the country are at an average of 3.5% with Darwin and Hobart being the highest, both on 5.4% followed Brisbane at 4.4%, Adelaide 4.1%, Canberra 4.1%, Perth 3.9%, Sydney 3.4% and Melbourne being the lowest on 3.1%.
Average time houses are listed for sale
Average time houses are listed for sale before purchase in the Sydney housing market for the month of November was 29 days and the Auction clearance rates for Sydney dropped from the peak of 90% in April down to just 59%.
Average rental rates
Average rental rates for Sydney are currently $612 per week for houses with an average yield of 3.2% and $541 per week for units with an average yield of 4.1%.
The RBA have once again left cash rates to a record low of 2% however many of the major lenders have increased their interest rates regardless of the RBA.
The above information is from RP Data December 2015 Housing & Economic Report.
watch the video below from RP Data