The Regional Housing Market Could Be Losing Steam
Small cracks in the market are emerging.
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In the past three months alone, regional house prices have risen 6.3% — twice as fast as state capitals following lockdowns in Sydney, Melbourne and Canberra.
However, the latest rise in regional house prices is unlikely to be sustained with fears of higher interest rates and tighter lending weights on demand according to CoreLogic.
Overall selling conditions are currently still strong across regional Australia, some indicators are already shifting according to the CoreLogic data.
The time it takes to sell a home has dropped seven days to 30 from a year ago but the metric is drifting from a recent low of 23 days in three months to November 2021.
Further, quarterly growth rates in dwelling values has been on an ascendant trajectory since September 2021 across the combined regional market — however, growth eased through January at 1.8% over the month — lower than the 2.2% in the previous month.
While the greater growth rate across the greater regions during January declined, it was most concentrated in NSW. Here, the regional market – where the market is most expensive – eased 60 basis points from 2.3% to 1.7%.
During the 12 months to January, the median dwelling value across the combined regions jumped 26.1% — outpacing the combined capital city rate of 21.3% for the same period.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
The construction sector is roaring back to life in some Australian states while others languish in the doldrums
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The home building market is on the rebound as building approvals rise, new data reveals.
Information from the Australian Bureau of Statistics shows that the total number of dwellings approved in August was up 7 percent seasonally adjusted, with apartments leading the way.
Private sector house approvals gained 5.8 percent in August while private sector residences excluding houses were up 9.4 percent. This follows on from a decrease of 14.6 percent in July and indicates a solid recovery in the Australian construction sector as the end of the year approaches.
Approvals for total dwellings were strongest in the two largest states, with Victoria recording a rise of 22.2 percent and NSW 12.5 percent. Western Australia also saw a significant rise of 12.3 percent.
In Queensland, the results were less positive for the sector, with total dwelling approvals falling by -26.9 percent. Tasmania also experienced a drop in approvals in August, down -10.1 percent and South Australia -6.9 percent.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
