Housing Market Conditions
The Australian and Victorian housing markets have continued their strong performance this year. The Melbourne auction market had a clearance rate of 68 per cent in July and a clearance rate of 77 per cent for the calendar year so far. There have now been over 13,500 homes sold by auction, 41 per cent more than last year.
The number of total dwelling units approved in Victoria increased by 1.4 per cent in seasonally adjusted terms for the month of June 2010, following a revised decrease of 5.4 per cent in the previous month. The value of total dwelling units approved in Victoria decreased by 7.4 per cent to $1.58 billion dollars. In trend terms, the number of total units approved in Victoria decreased by 2.5 per cent for the month while the value of total dwelling units approved fell by 1.7 per cent.
Housing affordability in Victoria has decreased in the March quarter. The proportion of income required to meet monthly loan repayments has increased from 29.5 per cent to 32.6 per cent over the quarter, an increase of 10.5 per cent. The average monthly home loan repayment has increased by 10.6 per cent for the quarter, while the median weekly family income has increased by only 2.0 per cent.
The total value of owner–occupied housing commitments, excluding alterations and additions, for May 2010 decreased 1.3 per cent in trend terms, which is now the eleventh consecutive decrease. In seasonally adjusted terms, the total value of owner–occupied housing commitments decreased by 0.3 per cent following the previous month’s 0.6 per cent increase. The total value of commercial finance increased in trend terms by 1.5 per cent and decreased by 1.1 per cent in seasonally adjusted terms. The value of total personal finance commitments decreased in trend terms by 0.6 per cent but increased by 0.1 per cent in seasonally adjusted terms.
The REIV market sentiment index decreased in June 2010, falling 22.0 per cent to 65.0 for the month. Six of seven components decreased for the month, bringing the index to the lowest it has been since July 2008. Key factors in the decrease in sentiment have been large decreases in the components representing number of enquiries received vs. last month (-45.8%) and estimate sale/lease prices vs. last month (-42.6%).
The Metropolitan Melbourne rental market tightened slightly in June 2010, with a vacancy rate of 1.5 per cent down from last month’s 1.7 per cent. The inner-Melbourne rate tightened to 1.1 per cent from last month’s 1.6 per cent. The middle-Melbourne rate remained unchanged at 2.0 per cent, while the outer-Melbourne rate also tightened to 0.8 per cent from 1.3 per cent last month.
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Tags: Auction, cent, Conditions, dwelling units, housing, housing affordability, loan repayments, melbourne auction, sentiment index, trend
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