TOP END HOUSES AND UNITS LEAD RECOVERY
CoreLogic’s MARCH Home Value Index confirmed First National Real Estate’s view that the market has neared the bottom of the current cycle, with the national house value index rising 0.6% in March.
Dwelling values were higher across the four largest capital cities and most of the broad ‘rest-of-state’ regions, led by a 1.4% gain in Sydney. The rise has been attributed to a combination of low advertised stock levels, extremely tight rental conditions and additional demand from overseas migration.
Advertised supply has been below average since September last year, with capital city listing numbers ending March almost -20% below the previous five-year average. Purchasing activity has also fallen but not as much as available supply; capital city sales activity was estimated to be roughly -7% below the previous five-year average through the March quarter.
Top end properties lead the recovery
The lift in housing values was most evident across the upper quartile of Sydney’s housing market. House values were up 2.0% in March and the upper quartile of the unit market was 1.4% higher over the month.
Regional properties rise 0.2% nationally, SA & WA resilient
Regional housing markets showed firmer conditions as well, with the combined regionals index rising 0.2% over the month. Housing values across Regional WA and Regional SA remain at cyclical highs despite 10 rate hikes.
SA’s Fleurieu-Kangaroo Island sub-region led capital gains over the month with a 2.6% rise in dwelling values followed by Dubbo, NSW (2.5%), Wellington, Victoria (2.4%) and Mid-West, WA (2.1%).
The best performing regional markets are quite different to what we were seeing through the recent growth cycle, according to CoreLogic.
It is mainly rural areas that are seeing the strongest increases, rather than the commutable coastal and lifestyle markets that were booming through the
upswing. However, some subtle growth is returning to regions within commuting distance of the major capitals, after many recorded a sharp drop in values.
Hobart, Canberra, Darwin & Adelaide face declines
Hobart recorded the largest drop in home values among the capital cities, down -0.9% over the month. Housing values across the southern most capital have fallen -12.9% since peaking in May last year; overtaking Sydney as the largest cumulative fall from peak across the capital cities. However, the pace of decline has been easing across Hobart over the past three months. Hobart can probably anticipate the arrival of speculative buyers shortly.
Canberra (-0.5%), Darwin (-0.4%) and Adelaide (-0.1%) also recorded a decline in values over the month, as did Regional Victoria (-0.1%) and Regional Tasmania (-0.7%).
Monthly change in capital city home values
MONTHLY ANNUAL
Sydney p 1.4% q 12.1%
Melbourne p0.6% q 9.0%
Brisbane p 0.1% q 8.6%
Adelaide q 0.1% p 3.0%
Perth p0.5% p 1.9%
Hobart q 0.9% q 12.9%
Darwin q0.4% p 1.6%
Canberra q 0.5% q 8.1%
National p 0.6% q 8.0%
WHY AUTUMN IS A GOOD TIME TO BUY
Autumn is often considered the best time of year to buy real estate in the Australia and New Zealand. The cooler weather and the changing colours of the leaves may make you think more about taking a walk in the park than buying a new home, but autumn can actually be a great time to get into the real estate market.
Firstly, the competition for homes tends to decrease in the autumn. The majority of buyers are looking to move in the summer months, meaning that there is often less competition for properties during the autumn. This can lead to better deals and more room for negotiation.
Secondly, sellers who list their homes in the autumn are often more motivated to sell. This is because they may be looking to sell quickly in order to move before the winter months arrive. This can also lead to more negotiation room and better deals for buyers.
Thirdly, autumn can be a good time to assess a property’s condition. With the cooler weather setting in, buyers can get a better sense of how well the home is insulated and heated. Additionally, as the leaves fall from the trees, buyers can get a clearer view of the property’s landscaping and any potential issues.
10 TIPS ON PREPARING YOUR HOME FOR AUTUMN
With warmer weather having come to an end, it's important to start thinking about preparing your home for the autumn season. Autumn brings cooler temperatures, shorter days, and falling leaves. To ensure that your home is ready for the change in season, here are our top 10 tips on how to prepare your home.
- Clean Gutters and downspouts
Autumn is often associated with falling leaves and heavy rain, which means your gutters and downspouts will likely fill up with debris quickly. Cleaning your gutters and downspouts is important to ensure proper drainage and to prevent water damage to your home.
- Seal Windows and Doors
Sealing windows and doors is important to prevent cold air from entering your home and to keep warm air inside. This can also help reduce your energy bills during the colder months. Use weather stripping or caulking to seal gaps around windows and doors.
- Inspect Your Heating System
Before the colder weather sets in, it's important to inspect your heating system to ensure that it's in good working condition. Schedule a maintenance check with a professional to inspect your furnace or heating system, and replace the air filter if necessary.
- Clean and Store Outdoor Furniture
If you have outdoor furniture, it's important to clean it and store it away for the winter. Clean the furniture with a mild detergent and water, and let it dry completely before storing it in a dry, covered area.
- Check Your Chimney
If you have a fireplace or wood-burning stove, it's important to have your chimney inspected and cleaned before the first use of the season. Creosote build-up can be a fire hazard and can also impact the performance of your chimney.
- Check Your Smoke and Carbon Monoxide Detectors
Autumn is a good time to check the batteries in your smoke and carbon monoxide detectors. Replace the batteries if necessary, and test the detectors to ensure they're working properly.
- Protect Your Floors
Autumn is a time when dirt, leaves, and moisture can easily be tracked into your home. Protect your floors by using doormats inside and outside.
- Prep Your Lawn and Garden
Autumn is a great time to prepare your lawn and garden for the colder months. Clean up fallen leaves and debris, and trim back any bushes or trees that need it. Consider planting bulbs for spring flowers, and protect delicate plants with frost covers.
- Stock Up on Winter Supplies
Stock up on winter supplies, such as salt or sand for your driveway and walkways, and ensure that you have a shovel or snowblower ready for when the first snowfall arrives.
- Adjust Your Lighting
As the days get shorter, it's important to adjust your lighting to ensure that your home is well-lit and safe. If you have timers governing towel rails or outdoor lighting, check to see if the on and off increments are still suitable.