FRESH LISTINGS MEAN MORE CHOICE FOR BUYERS
CoreLogic’s NOVEMBER Home Value Index confirms that housing values rose another 1.5% in October, but the pace of growth was marginally slower, as we have seen for the past quarter.
At long last, conditions are improving for buyers, with persistently low levels of housing inventory starting to lift from an extremely low base. While market conditions remain very strong, some diversity is beginning to appear, with Perth recording its first negative monthly result since June last year – down 0.1%. However, Brisbane is now the nation’s fastest growing capital, with values there rising 2.5% in October. Adelaide and Hobart followed with continued strong growth, each recording a 2% rise in home prices. Sydney and Melbourne’s rate of monthly growth halved, which is an important indicator as to the trend likely to follow across other capitals.
Monthly change in capital city home values
MONTHLY ANNUAL
Sydney p 1.5% p 25.2%
Melbourne p 0.9% p 16.3%
Brisbane p 2.5% p 22.3%
Adelaide p 2% p 20%
Perth q 0.1% p 16.3%
Hobart p 2% p 28%
Darwin p 0.4% p 19.2%
Canberra p 1.9% p 25.5%
National p 1.4% p 21.5%
Newly advertised listings surge 47%
You can almost hear the cries of relief from buyers because new listings surged by 47% last month, after the recent low in September. Naturally, this will relieve some of the upward pressure on prices and contribute to the overall slowing trajectory of growth witnessed for the past quarter. 47,040 new listings were advertised in October, representing 22.7% more inventory than was available at this time last year. That’s a result that is also 5.2% above the five-year average.
Nationally, there are 141,786 houses and apartments currently for sale. It’s still a seller’s market but there is a good chance advertised supply will continue to rise through the rest of spring and early summer, creating more choice for buyers.
Regions lead the capital gains
Regional Australia continues to lead the nation’s capital gains, with New South Wales gaining 2.1% and Queensland 1.9% for them month. Western Australia was the only broad rest-of-state region to record a marginal fall in housing values (-0.1%).
However, it is Tasmania that has seen the greatest growth in the past 12 months, leading the nation’s country property prices with a phenomenal 29.1% growth.
Units appreciating at a slower rate
Apartments continue to record lower rates of growth, compared to houses. In Sydney, when units are deducted from the data, houses have risen a staggering 30.4%, whereas units have managed just 13.6%. In Melbourne, it’s 19.5% against 9.2% respectively. This trend is less evident regionally, where the performance gap is much slower.
With affordability now a significant factor for houses, we expect demand to increase for units – particularly as international borders open. The gap between the median price for Sydney houses and units is now a whopping $500,000. Tightening credit availability is anticipated to begin rebalancing market conditions towards the end of the year.
IMPROVE YOUR SALE PRICE WITH SIMPLE DIY DESIGN
These few simple tips bring that extra style and sophistication to your space for the best results possible, when you’re selling.
Windows: A change of curtains, blinds or shutters can transform a room from drab to dazzling in an instant. Thick luxurious fabrics bring a touch of elegance, while lighter natural fibres such as cotton or linen add privacy without blocking out external light. Ugly window frames can be disguised behind fresh clean plantation shutters, while bright vibrant coloured window treatments can lift the mood of a space when contrasting with freshly painted walls and well-chosen cushions and throw rugs.
Floors: The choice between floorboards, tiles, or carpet, can be the difference between a space being warm and inviting, or cold and sterile. Flooring is as much a style choice as anything else and though there are classic pairings – floorboards and cottages, polished concrete and warehouses, the addition of feature tiles, rugs or even decorative edging can completely change the mood of the whole interior.
Lighting: The right lighting not only sets the mood; it also dictates the usability of a space. Too dark and people steer clear, too bright and they want refuge elsewhere. Find the balance with different strength bulbs, strategically placed lamps and well positioned overhead lighting. You don’t need to spend a fortune to give your property that extra edge before listing.
ELECTRIC VEHICLE READY HOMES FOR TODAY AND BEYOND
Like most new technologies, many of us wait until after the tipping point of what seems like a trend before we invest or transition from what we knew and loved before.
This has certainly been the case with electric vehicles to date, with upgrades from conventional cars limited to a minority across the globe. Of course, price has been an issue for many in the past, but there have also been concerns about convenience when it comes to recharging and access to charging stations when you’re on the road. As an everyday user, the portable charging option only extends so far. Electric vehicles come with a portable charger as standard, however an overnight charge on a 3-pin plug supplies barely 50-60 kms worth of travel, which is far from sufficient if your job requires you to clock up the miles, or you’re a carpooling parent ferrying kids from one activity to the next and time is of the essence. You can forget road trips or weekends away on that too.
With governments globally recognising the need to increase adoption of electric vehicles, it’s the very near future indeed that will see many homeowners installing home charging docks on site to increase the flexibility of usage for them with their electric vehicles. Extending on from this, as availability of conventional vehicles declines and update of electric vehicles increases, future new homes will start to have EV charger connections included as a standard part of their build along with other fittings, fixtures, and power outlets.
Phasing this in however will depend on consideration being made around capacity of power from one property to the next. Each electrical device in a property requires a certain dedicated flow of power for it to function safely. When an electric vehicle charger is brought into the mix, it’s much easier for this to be integrated into the needs of the entire property at the outset, then for extensions on existing power supply to be pushed. If you are installing a charger to an existing property, it’s crucial to have a certified electrician advise you on the current consumption of the appliances across the property – from lights to heating, ovens to hot water systems – and what will be required to make the transition to upgrade. This may mean charging can only happen at a specific time of day – for example overnight, while other appliances are not being used. The goal is to find a solution that meets your everyday needs safely, while allowing for the maximum charging potential for the vehicle on a regular basis.
Of course, the vehicle manufacturer will advise you on the ideal scenario for charging before you invest in their product. As we still transition into the technology, some manufacturers will even subsidise the cost of installation of a home charging station as part of your purchase agreement.