(Australian Associated Press)
CAPITAL CITY PRIVATE TREATY MEDIAN PRICES
Sydney – $970,000
Melbourne – $699,000
Canberra – $623,000
Darwin – $580,000
Brisbane – $520,000
Perth – $505,000
Adelaide – $450,000
Hobart – $390,000
Sydney – $745,000
Melbourne – $542,000
Perth – $416,000
Canberra – $398,500
Brisbane – $383,500
Darwin – $367,500
Adelaide – $344,750
Hobart – $323,250
Source: CoreLogic Property Market Indicator Summary week ending May 28, 2017.
CAPITAL CITY LOAN TO VALUATION RATIOS APRIL 2017
Perth – 77.1 per cent
Brisbane – 76.7 per cent
Adelaide – 75.4 per cent
Canberra – 75.3 per cent
Darwin – 71.9 per cent
Melbourne – 65.9 per cent
Sydney – 58.1 per cent
National average – 73.4 per cent
Source: Equifax/CoreLogic Loan-to-Valuation Index
Home values have slipped in May, against a backdrop of rising home loan rates, softer auction results and slowing investment.
Property analytics firm CoreLogic’s five city aggregate index was down 1.1 per cent over 29 days of May, indicating a negative result will be reported when the month ends.
“The weak preliminary result is largely influenced by a month-on-month fall in Sydney and Melbourne dwelling values, however when seasonal factors are taken into account, the May result isn’t likely to be as weak as what the headline results are indicating,” CoreLogic head of research Tim Lawless said.
“The trend rate of growth shows the pace of capital gains has moderated from recent highs; this slowdown is occurring against a backdrop of rising mortgage rates, softer auction results, rising advertised stock levels, lower housing market sentiment and slowing investment activity.”
Buyers are on average borrowing smaller chunks of cash compared with the value of their properties, with less activity from first home buyers thought to be responsible for the decline.
The national average loan to value ratio (LVR) in April was 73.4 per cent, down from 74.3 per cent in September 2016.
The index from analytics company Equifax and CoreLogic shows Perth mortgagors have the highest LVR at 77.1 per cent, while the lowest is in Sydney, at 58.1 per cent.
Equifax’s Neil Shilbury says strong housing markets in Sydney and Melbourne have pushed down LVRs, as loan application amounts grow at a slower rate than house prices.
“Lower LVRs in Sydney and Melbourne may … be due to first home buyers making up a smaller component of the housing market,” Mr Shilbury said.
Changes to LVRs have been mixed across the capital cities, but have jumped in mining and agricultural towns and fallen in coastal regions and satellite towns.
“Satellite cities like Wollongong have benefited from a spill over of housing demand, which has pushed up housing values,” Mr Lawless said.
“Many coastal regions have been impacted by equity-rich buyers seeking out holiday homes and retirement options.”
Meanwhile, auction results across the major capital cities for the week to May 28 were slightly stronger, with a preliminary weighted average clearance rate of 74.6 per cent, up from 73.1 per cent the previous week.
On the supply side of the housing market, building approvals for the construction of new homes in April were stronger than expected, up 4.4 per cent for the month, beating market expectations of a three per cent rise.
But building approvals have tumbled 17.2 per cent during the year to April, according to Australian Bureau of Statistics figures released on Tuesday.