Monthly Property News 3rd Edition 2023
“Are these positive signs of stabilization?”
Hi Guys, It’s Dean O’Brien from OBrien Real Estate with the third edition of the property news for 2023, where real estate information is on the house.
There are signs again from the data we are seeing released by industry experts that the property market decline has eased. Corelogic reported its February data on median home prices, and the decline was only 0.4%. Auction clearance rates too also improved, as reported by the REIV in February, with an averaged clearance rate of 72.5% as opposed to a December 2022 clearance of 68.5%.
The market is undergoing a contraction of listing volume so far this year, which gives confidence to sellers not only from the point of view of buyers competing but is also an important factor in home price stability, giving home sellers the certainty they need when selling their home and buying their next one.
The outlook for the economy is also looking more positive. February recorded an annual increase of the CPI of 7.4%, which is lower than the 8.4% rise for the year to December 2022. Australia recorded a record current account surplus of $14.1 billion. Unemployment rose marginally to 3.7%, which indicates some relief on labor shortages, and Australian stocks in the consumer discretionary sector are benefiting from both the positive US retail sales outlook and the 1.9% increase in January retail sales as opposed to the 4% decline we had in December.
Melbourne Metro declines in the Home Value Index over January fell 0.4%, and on a 12 month rolling average, Melbourne prices are now 9.6% down for all dwelling types. Regional Victoria has also had the same decline, easing 0.4%. Regional Victoria is now 5.1% down over the last 12 months. However, unit prices in Regional Victoria increased by 1.0%.
Looking at the rental market, rents in Metro Melbourne and Regional Victoria.
Gross yields continue to trend higher as rents consistently outpace housing values.
Unit rental price growth looks set to continue based on the influx of overseas arrivals, amplified by an additional 35,000 permanent migrants relative to prior years. There are also several other factors likely to be contributing to the surge in unit rents, including rental affordability pressures forcing a transition from houses to units and additionally the strong rebound in foreign students in areas within close proximity to universities and transport hubs.
That’s all for this month, I’m Dean O’Brien, and remember that the information provided is of a general nature. You should always seek independent legal, financial, taxation, or other advice in relation to your unique circumstances.