Price growth subdued ahead of bank rate cuts
With at least 10 days to wait until the lower mortgage rates announced by the banks take effect, analysts report little change in property prices. Across the capital cities there was only a 0.2 per cent rise in prices with the exception of Sydney (0.4 per cent) and Melbourne (0.1 per cent) figures from CoreLogic RP Data show. Robert Larocca from CoreLogic says that it will take “a few weeks” before the impact of lower rates is felt and auction Services director Rocky Bartolotto predicts that it will be after Easter before listings really gather pace. Until then supply may be limited but if buyers are also waiting until April the lack of listings won’t have a major effect on prices.
Source: CoreLogic RP Data, News.com.au
Mining towns suffer price crash, but there is an upside
The mining sector’s decline has hit some of Australia’s communities hard with unemployment converting to a slowdown in the property market with prices tumbling. In Port Headland, for example, a home that was sold for $1.3million in 2010 was at auction for $360,000 at the weekend. Local MP Brendan Grylls says that there is an upside to the downturn as towns like Karratha have seen a return of local businesses that had closed down during the property boom as people could make more money renting their homes. While he admits the fall in prices and rents may be a problem for out-of-town investors the market has not hit rock bottom and is “surprisingly resilient.”
Source: The Australian
New lots in WA highest for 6 years
The number of new lots created in Western Australia has reached a six-year high. Landgate’s business activity profile for January reveals that between July 2014 and January 2015 there were 18,736 new lots in the state. A comparison of new lots created for the month of January reflects a 23.36 per cent increase from 1,618 in January 2014 to 1,996 this year. January is not generally a high point for the year’s property sector activity but Landgate chief executive Mike Bradford says last month’s figures are encouraging: “1,996 is well ahead of the three-year January average of 1,478 and a 32 per cent increase on the five-year average of 1,511.” Total land transactions for the month declined by 6 per cent although for the financial year-to-date the decline was 1.3 per cent.
Melbourne auctions lack the heat of Sydney
Property auctions in Melbourne did not reach the pace of those in Sydney over the weekend according to data from The Domain Group. Its senior economist Dr Andrew Wilson said that Melbourne was in “slowdown mode” with a clearance rate of 67 per cent; in Sydney it was 82 per cent. Realtors are optimistic that there will be better results in Melbourne once the lower mortgage rates take effect later this month.
Source: The Domain Group
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