Weekend auctions: hammer horror
Megan Gale's pre-auction sale was a model result, but the clearance rate appears to be on the slide. Simon Johanson reports.PT2M26S http://www.canberratimes.com.au/action/externalEmbeddedPlayer?id=d-2aqdn 620 349 December 3, 2012
Melbourne is becoming a drag on the national housing market, with new data showing it's the only capital city where home prices continue to fall.
The sharp 1 per cent decline in dwelling values experienced in Melbourne last month has offset the sometimes strong gains witnessed in other capital cities.
Analysts RP Data-Rismark report dwelling values showed no movement last month across the eight capital cities in November.
The lacklustre performance for the national market comes despite sharp cuts in the Reserve Bank's key interest rate over the past year. Photo: Justin McManus
The lacklustre performance for the national market comes despite sharp cuts in the Reserve Bank's key interest rate over the past year, including a 25 basis point cut in October.
The aggregate dwelling value also fell despite strong rises of 1 per cent in Perth, 1.1 per cent in Darwin and 1.3 per cent in Canberra.
Adelaide and Brisbane followed with increases of 0.5 per cent, while Sydney and Hobart saw virtually no growth at 0.1 per cent.
RP Data’s senior research analyst Cameron Kusher said the mixed November market conditions indicate that the ‘‘road to a market recovery’’ would be marked by pauses and volatility.
Seven of the eight capital cities posted price falls of 0.9 per cent to 4.5 per cent in October.
Capital city home values are still 5.6 per cent below the peak hit in mid-November 2010, but have risen 2 per cent from their bottom in late May 2012.
“Home values in Brisbane and Perth remain below where they were five years ago whereas the other mainland cities have all increased over this period,’’ Mr Kusher said.
‘‘This has meant that relative to the other capital cities, Brisbane and Perth have experienced affordability improvements and subsequently we may see them become more popular from both an owner occupation and investment perspective.”
This latest data will dampen expectations that Melbourne’s property market was also entering a recovery phase, with the 1 per cent fall coming on the heels of a 1.1 per cent decline in October.
Leith van Onselen, chief economist with MacroBusiness, said the results showed ‘‘it was the same old story’’ in Melbourne, which continues to suffer a hangover from the building boom and record pace of price growth seen in 2009-10.
‘‘We’ve got the worst fundamentals anywhere in the county. Melbourne is already hugely overvalued. We’ve had the biggest building boom here so we’ve got oversupply with both houses and apartments. We’ve also got the highest rental vacancy rate and the lowest rental yields. And the Melbourne economy doesn’t have a lot going for it.’’
Mr van Onselen said the overall performance for the country was weak, excepting signs of a recovery in Darwin and Perth, which continues to benefit from the mining sector.