Property Update - July 2024

Monthly highlights
 

• National home values rose 1.8% in the June quarter, a softer pace of growth than the same time last year, when home values rose 3.3%.

 

• The annual pace of growth has slowed to 8.0%, down from a recent high of 9.6% in the 12 months to February.

 

• The rolling 28-day change in the combined capitals home value index has slowed slightly through to the start of July, and growth is weaker than this time last year.

 

• CoreLogic estimates there were 37,148 sales in June, taking the national annual count to 508,610. This is 8.6% above sales volumes last year. The six-month moving average sales volume is 42,521, which is roughly in line with the monthly average for the past five years.

 

• The vendor discounting trend is smaller than a year ago nationally, but has deepened a little across the combined capitals in rent months. Similar to capital growth conditions, the selling environment for vendors varies by market. The smallest discounting rate in the June quarter was 2.7% in Perth, and the largest was 4.4% in Hobart and Darwin.

 

• The rolling four-week average auction clearance rate trended slightly lower through June. In the four weeks to June 30, the combined capital cities clearance rate averaged 64.2%, down from 65.1% in the previous four-week period. While the clearance rate has softened slightly over the month, it remains above the series average of 63.0%. 

 

• Annual growth in rent values slowed to 8.2% nationally, reflecting an incremental easing in the rate of rental growth at a high level. Growth in rents over the month of June slowed to 0.4%, which is the lowest rate of monthly growth rate since September last year. 

 

• Dwelling approvals had a strong 5.5% lift in May, led by a 14.2% lift in unit approvals. While the more volatile unit segmentdrove most of the monthly increase, monthly house approvals have risen for the fourth month in a row. Dwelling approval readings are still well below historic averages, but it is possible they passed through a trough at the beginning of 2024.

 

• New variable rates for owner-occupiers remained steady through May, hovering around 6.27% for the past five months. Variable rates for investors have eased slightly to 6.65%, down from 6.68% back in March. Fixed rates with a term of three years or more have the highest average new rate of different loan types. 

 

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