Wednesday, July 2, 2014

RP Data June Index Results

Capital city dwelling values have shown a 1.4 per cent capital gain over the month of June 2014, with all cities apart from Adelaide and Darwin recording a rise in dwelling values. According to RP Data research director Tim Lawless, the strong result has partially reversed last month’s 1.9 per cent fall and provides a - 0.2 per cent decline in dwelling values over the June quarter.

Mr Lawless said, “With interest rates remaining low for the foreseeable future, it is doubtful that housing values will start to slide, at least not at a macro level. What is more likely is that natural affordability constraints will start to dent buyer demand, as will the low rental yield scenario’s that are very much evident across the largest capital cities of Melbourne and Sydney.

Other indicators such as clearance rates are holding relatively firm which, according to Mr Lawless, further reinforces the notion that the housing market isn’t set to show a market correction. 

Brisbane apartment prices (to 30 June 2014):
June 2014 - up 0.7%
Quarter - up 1.4%
Year to Date - up 1.7%
Year on Year - up 5.4%
Median price based on settled sales of Brisbane apartments over the quarter - $385,000

Tuesday, July 1, 2014

Not out of the woods yet

I was speaking with a U.S. homeowner recently who handed her keys back to the bank.  She bought a house in NY State about 5 years ago, substantially renovated her house, but it was still way underwater today.  From what she told me, there are many other homeowners who are still in negative equity in the U.S.  And there are a large number of homes still going through the foreclosure process in some states.

One company that has been buying up U.S. homes is Waypoint.  Have a look at the Waypoint website  to see their rental homes.  They list and manage directly, without agents.  An interesting story about Waypoint is here.  There is consolidation occurring in the buy-to-rent market in the U.S.