Property Market Information: Growth continues, but moderates

By the resi financial blog team, 20 November 2014

Property Market Information: Growth continues, but moderates

Growth in property prices continues, but it has moderated to more sustainable levels according to some sources.

The Housing Industry Association (HIA) recently commented on figures released by the Australian Bureau of Statistics (ABS), stating annual capital growth figures are in single digits for the first time in a year.

While decreasing growth may sound like a negative thing, this is actually a sign of the housing market levelling out to a state which can be maintained.

In a November 11 statement, HIA Senior Economist Shane Garrett stated that, "today's figures are a welcome addition to the suite of home price data which show that price growth is easing to a much more sustainable rate."

According to RP Data's Daily Home Value Index, as at October 31, Sydney was the only market in double figure growth, posting 13.09 per cent for the 12 months to date. Next was Melbourne at 8.88 per cent, Brisbane at 5.57 per cent and every other capital city was at 5 per cent or less.

This will be welcome news to buyers who are trying to break into the market for the first time.

Those selling property needn't worry about achieving their desired price though, as auction clearance rates show strong buyer activity. According Australian Property Monitors, the national auction clearance rate has been around 72 per cent for the past five weeks.

Commenting on ABS lending statistics, Real Estate Institute of Australia President, Peter Bushby noted that home finance commitments (excluding refinancing) had fallen by 0.4 per cent nationally.

"The September 2014 lending figures indicate a moderating market with September being the eighth consecutive month of modest drops in lending levels if refinancing is excluded," said Mr Bushby.

This would indicate that more homeowners are deciding to stay where they are and renovate or extend to accommodate their growing families.

If you would like to explore home loan refinancing options to extend your home, give a resi loan specialist a call today.

Categories: Home Loans