Real Estate Investment:Today

Here’s what’s happening in our housing markets in 17 charts

Residential real estate, inflation  and interest rates just can’t stay out of the news can they?

The latest CoreLogic Chart Pack provides a detailed overview of key market metrics, so here’s what happened in May.

Market overview

The combined value of residential real estate was valued at $9.97 trillion at the end of May, just under the $10 trillion mark.

However, the overall loan to value ratio of Australia’s real estate is very healthy with only $2.1 trillion worth of outstanding mortgage debt.

With half of Australia’s home owners having no mortgage debt and 40% of those with loans having fixed rate loans, and many borrowers well ahead with their repayments, this means most homeowners won’t be affected by rising interest rates for quite some time.

Dwelling values in Australia are 14.1% higher over the past 12 months.

This is down from a cyclical peak growth of 22.4% in the 12 months to January 2022.

Annual Growth

Brisbane has the strongest growth.

The highest annual growth rate in dwelling values among the regional and capital city dwelling markets was across Brisbane, at 27.8%.

The lowest rate of appreciation in values was across Regional NT, which each saw a 4.9% rise over the year.

Capital Growth 1 Capital Growth 2

The most expensive properties are suffering most.

In the three months to May, capital city homes saw upper quartile values fall -1.4%, compared to a rise of 3.4% across the lowest quartile of values.

Sales volumes are starting to ease from recent highs.

CoreLogic estimates that in the 12 months to May, there were 586,602 sales nationally, up 6.5% compared to the previous year.

However, initial sales estimates over May were -26.9% lower than the same month of the previous year.Sales Volumes Easing

At the national level, properties are taking longer to sell.

In the three months to May, the median days on market was recorded at 28, up from a recent low of 20 days in the three months to November.

Days On Market

Vendor Discounting Increasing

Similarly, vendor discounting has also increased from the recent low of 2.9% recorded in the three months to November last year.

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