Home values decline
Cotality released its latest home values index, with prices falling by -0.7 per cent in the month.
The downturn has now spread from the largest and most expensive cities into Brisbane and Adelaide, as well as Canberra:
Source: Cotality
Cotality noted that over the past three months prices in the upper quartile of the market had fallen by -3.2 per cent, while prices in the lowest quartile actually increased by 0.3 per cent.
Trent Saunders from CommBank Research put together this very useful chart to show the difference (and also the trend):
In this context, it's perhaps no surprise that the greatest year to date declines have been for houses in Sydney (-5.9 per cent) and houses in Melbourne (-5.9 per cent).
Advertised rents rose another 0.4 per cent on the back of "extremely low" rental vacancy rates, to be 5.9 per cent higher over the year, stretching rental affordability to its worst level on record.
Cotality noted that rents were up $40/week over the pasty year and $200/week over the past five years.
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Also worth a read, Charter Keck Cramer's State of the Market report:
"The BTS apartment market faces ongoing
and increasing headwinds.
This is most easily
observed in the alarmingly low levels of
current and forecast BTS apartment supply
across Australia’s capital cities."
For example in Sydney, the future supply of apartments is expected to run at only half of the annual underlying demand:
Source: Charter Keck Cramer
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