Property market values continued to trend low in September, but to say that the market is likely to crush is highly unlikely. With the major capital cities coming to a slowdown this has affected the national property market in a big way. However, the low trends in some of the capital cities have not stunted the continued growth in regional markets. Here is the latest update to what has been happening in the property market.
Major capital cities continue to slow down
Most of the Australian capital cities have been experiencing a gradual slowdown, which according to CoreLogic, marks its 12 month anniversary with values down by 2.7%. Regional markets have also experienced a slowdown in the property market, but perhaps not as drastic as the capital cities.
When the capital cities catch a cold the property market shivers as they account for 60% of the national value of housing. The national dwelling values continued to fall to 0.5% in September, with values tracking lower in five of the eight capital cities.
The upper quartile of the market feels the pinch
Places such as Sydney and Melbourne where the median value in property ranges from $697,457 to $847,948 continue to feel the pinch in terms of the decline in dwelling values. CoreLogic recorded a 5.4% fall in values across the upper quartile when it came to the combined capital cities over the past 12 months. Sydney alone experienced a drop of -0.6% in the past month which is the highest drop in dwelling values.
However, regions such as Hobart have not been extremely affected in the drop-in dwelling values. In fact, places such as Hobart, Canberra, Brisbane, and Adelaide have weathered the slump in dwellings gracefully. This could be in an increasing first-time home buyer market looking for a property that is affordable.
Your House could take longer to sell at an Auction
Australians that are planning to sell their homes on the Auction market could find their property taking longer to sell. The market is proving to be more of a sellers’ market with sales taking 52 days to sell compared to the same time last year when it took 42 days. Clearance rates have also proved to be on the slump with the average rate tracking at mid to low 50% across the major auction markets.
Auctioneers are preparing to release more properties on the market for spring, but this could be met with a slow turn over in terms of sale. This is more so for houses that are being sold in the capital cities.
Although the national dwelling values are continuing to fall experts state that it is unlikely that this will usher in a property market crash. There is still a fair amount of areas in Australia where property is affordable for first-time homeowners to make their way onto the property ladder, but it is important that adequate research is put into searching a home before they apply for home loans.