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May 2022 Sales Update
over 2 years ago
May 2022 Sales Update
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HOUSING MARKET NEARS CYCLICAL PEAK


CoreLogic’s national Home Value Index was up 0.6% in April, with half of Australia’s capitals rising by more than 1% but Sydney & Melbourne’s quarter of negative growth dragging headline growth rates down.

Sydney and Melbourne, which have the heaviest weighting in the Home Value Index, were the main drag on the headline growth rates. Sydney housing values recorded the third consecutive month-on-month decline, down 0.2%, while Melbourne values were flat (-0.04% when taken out to the second decimal place). Technically values are down over three of the past five months in Melbourne. Hobart also recorded a negative monthly change (-0.3%), the city’s first monthly fall in 22 months.

Demonstrating the diversity in housing conditions across the broad regions of Australia, Adelaide enjoyed 1.9% growth in April, leading the pace of capital gains, followed by Brisbane (1.7%), Canberra (1.3%) and Perth (1.1%). However, it’s clear that Brisbane moved through its peak of growth (8.5%) in December last year and Adelaide (7.4%) in January.

Perth and Darwin are the exceptions, where the rolling quarterly trend has gathered some steam since late last year. Perth housing values were up 2.4% over the three months ending April compared with a recent lull through late last year when the quarterly trend fell to just 0.4%.

 

Monthly change in capital city home values

                                                                  MONTHLY                               ANNUAL

Sydney                                                      q 0.2%                                      p 14.7%

Melbourne                                               0.0%                                       p 8.4%

Brisbane                                                   p 1.7%                                       p 29.3%

Adelaide                                                  p 1.9%                                       p 26.2%

Perth                                                          p 1.1%                                       p 6.7%

Hobart                                                       q 0.3%                                       p 20.7%

Darwin                                                       p 0.9%                                      p 8.7%

Canberra                                                  p 1.3%                                       p 20.9%

National                                                   p 0.6%                                      p 16.7%

 

Why is growth in Perth and Darwin accelerating?

A rebound in migration rates as state and international borders re-opened could partially explain the renewed exuberance, along with persistently low advertised stock levels and strong economic conditions, according to CoreLogic.

While ABS internal migration data by greater capital city is currently only reported to June 2021, the data points to a vast uplift in internal migration to Perth for the year (6,468), a substantial turn-around from the previous four-year average (-3,735).

 

Regional markets ‘somewhat insulated’

Regional Australian housing markets have been somewhat insulated from the slowdown, with housing values up 1.4% in April across the combined regionals index, compared with a 0.3% gain across the combined capitals. Advertised stock levels remain 42% below the previous five-year average in the regions, while the volume of home sales is holding 20% above the previous five-year average. The imbalance between available supply and demonstrated demand is a key factor supporting growth in housing prices across Regional Australia, however the trend rate of growth is generally slowing as affordability constraints become more challenging.

 

Annual growth trend in home values now falling sharply

With the national growth reading dropping from a recent peak of 22.2% over the year ending November 2021, to 16.7% over the most recent 12-month period, the housing market shows signs of approaching its cyclical peak.

As the stronger months of capital gain from early 2021 fall out of the 12- month calculation, CoreLogic says we will see the annual change reducing more sharply over the coming months.

 


WHAT TO DO WHEN YOUR PROPERTY GETS BROKEN IN TO


Having someone break into your property and invade your private sanctuary is an awful experience, regardless of what was stolen, broken or vandalised. Having a good action plan in place will help recoup your losses and protect yourself and your home better moving forward.

Firstly, process what’s happened. It may take you a few minutes to take in the scene and mentally understand that you’ve been broken into. It’s important to take it all in and get a sense of what has changed. Try to recount what was there before, what might be missing and who it might have been if relevant. Don’t touch anything or attempt to clean anything up.

Next, call the police. Depending on the time and scale of the break in, it’s usually a good idea to call the police as a priority. Once you’ve got the information around what happened clear, you can answer the standard questions such as where you are, what happened, if anyone is injured and so on.    

While you wait for the police, and while everything is fresh in your mind, start to document as best you can. Take photos of disturbed parts of the house, things that are unusual and any damage. It’s often useful to take a video of the scene and recount your steps to talk through everything you remember. Make a list of things you think might be missing and if you have time, find older photos of missing objects as reference points.

When speaking to police give as much detail as possible and call your insurance company next while the details are still fresh in your mind. Once the dust has settled you may decide to review and upgrade your home security system also. 

 


IMPROVE YOUR SALE PRICE WITH SIMPLE RENOVATIONS


If you’re looking to sell, you will naturally want to make sure your property is in the best condition possible before it goes to market. Every property has its own unique selling points but if yours is lacking something, why not implement some aesthetic changes that can transform your interiors and maybe even increase your selling price.

Feature walls

Giving your property a fresh coat of paint before you sell is a great idea, but a feature wall can really add that wow factor for buyers. Usually feature walls work best in shared living spaces or master bedrooms and can provide a striking contrast if styled well with contrasting furniture, rugs, and pillows. The right colour choice can also make a room seem bigger, or smaller, or warmer and more inviting and paint shops can give recommendations on what colours to choose to perform the function you need. Steer clear of anything too dramatic however, unless it’s in context with the rest of the property.

Graphic glass

A great innovation in home interiors, graphic glass is becoming increasingly popular as a way to personalise a space and create a unique feature. Most used as splashbacks in kitchens, graphic glass is created by printing a customised photograph or design onto a piece of glass that is then fitted behind the stovetop to function as any standard splash back would. From exotic foreign landscapes to world renowned works of art, graphic glass can bring in a new colour palette to your space, provide texture, depth and contrast in a way that can lift a tired kitchen wall. It can also be used in bathrooms and laundries or even as a feature piece in an entry way. The right image choice is important so as not to negatively contrast with existing counters and cabinets and of course it should be sized to be custom fit to the space its destined for.

Creative lighting

Changing light fittings and lighting in general can be a great way to improve the interiors of a property. Simple changes can be made, such as switching out the temperature of bulbs to enhance the space – cooler lighting works best in kitchens while warmer lighting is better for sleeping and living spaces. Light fittings with multiple directional spotlight-style fixtures allow you to control the direction of light within a space and therefore highlight certain featuresand dim others you may not want attention drawn to. A less than enticing room can be transformed with a uniquely designed light fitting – pendant lamps over a kitchen bench for example, or a bigger scale statement piece in the centre of a dining or living room, or entry way. You can even install voice or app controlled smart home lighting to level up your property and entice tech savvy, environmentally conscious buyers.