July 2012 Housing Market observations

In July, the Housing Industry Association said new house sales fell 5.6 per cent, after three consecutive months of rises. This seems a reversal of trend from April-June, however movements are different between detached homes, and the units and multi-dwelling categories.

The decrease in July was similar in percentage terms between houses and the multi-unit category. However the increase of 2.8% in June for example, was largely attributable not to homes, but units and multi-dwellings, which increased by 15% whilst homes only increased by 0.7%.

House Prices

Dwelling values across capital cities recorded a second month of capital gains in July according to RP Data, with overall dwelling values up by 0.6% over the month following a 1.0% rise in June.

The ABS also revealed that for the June Quarter 2012 established house prices across the nation increased on average by 0.5%.

Home Loan Volumes

Home loan volumes increased overall in June according to the ABS, with the greatest increase coming from new home purchases, and first home buyer percentage of total owner occupied housing finance commitments rose to 18.3% in June 2012 from 17.8% in May 2012.

RP Data also reported in early July that the average hold-time for property has increased to 9 years, for all holders of Australian property.


Comments are closed.