Housing flatline in May
Housing prices were down in Sydney and Melbourne in May - and Canberra - while growth rates are turning lower in the other capital cities.
From Cotality's monthly report:
Source: Cotality
Housing market turnover is well down in Sydney and Melbourne, but regional Australia markets have held up better to date.
Over the past quarter, houses prices in Sydney and Melbourne are down by -2.6 per cent and -2.8 per cent respectively, while units in Sydney and Melbourne are down by a more modest -0.9 per cent and -1.1 per cent respectively:
A very interesting quote from Tim Lawless on the divergence in market conditions over recent years:
“We are continuing to see multi-speed conditions across Australia’s housing sector, with Perth and Melbourne at opposite ends of the spectrum. The past five years have seen these cities diverge sharply, with Perth values up a stunning 91.4% while Melbourne home values are only 3.3% higher since May 2021.”
Generally lower priced properties have been more resilient, according to Cotality, but prices are now even declining in the bottom price quartile for houses in Sydney and Melbourne, and for units in Canberra.
Rents rose by +5.9 per cent over the year to May for the fastest pace of growth since September 2024, while rental vacancy rates fell back to record lows.
Cotality noted that upwards pressure on rents is likely to persist:
Source: Cotality
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Records...made to be broken
After nine stonking weeks of gains, the US S&P 500 has bounded 20 per cent higher and blazed to new highs, with the CAPE ratio now approaching the unprecedented high of 44.19, reached in December 1999.
Much of the recent euphoria has been around the huge take-up in AI installations.
The price-to-sales ratio of the US stock market is also at extremely high levels.
Markets have well and truly moved on from the Iranian conflict (and then some).
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