Housing values record their first monthly increase since December 2010 in November 2011
- Capital city dwelling values up 0.1% over the month of November, the first monthly increase since December 2010. Dwelling values are down -3.5% over the twelve months to November 2011.
- Home values in Melbourne and Brisbane fell by the most significant amount over the quarter, both down by -1.7%, followed by Adelaide and Perth which both fell by -0.3%.
National sales volumes are tracking about 17% below the five year average.
· In recent months the estimated number of dwelling transactions has remained quite stable. Based on our estimates of October transaction numbers, every capital city except Sydney (+8%) is recording lower than average home sale numbers.
· The worst hit markets are Melbourne (-32% below average) and Darwin (-30% below average).
- Rents are starting to improve in certain areas and across certain product types while yields continue to improve.
- Capital city house rents have increased by 4.9% over the 12 months to November 2011, compared to average annual growth over the past five years of 5.8%.
- Capital city unit rents have increased by 5.4% over the 12 months to November 2011, compared to average annual growth over the past five years of 6.6%.
- Gross rental yields for houses have improved from 3.9% last November to 4.3% currently and for units they have increased to 5.0% from 4.7% last year.
Homes are taking longer to sell and vendors are providing large discounts on their price expectations however, conditions have shown improvement over recent months.
· The average number of days it takes to sell a house has decreased over recent two months. It currently takes 53 days on average to sell a capital city house compared with 46 days at the same time last year.
· Vendors are now providing an average discount of -6.9% from their initial listings price, at the same time last year the average vendor discount across the capital cities was recorded at -5.9%.