Viewing by month: December 2014

Home value growth continues to slow

According to the November CoreLogic RP Data Home Value Index, dwelling values across Australia’s capital cities declined by -0.3 per cent over the month. The data highlights that the rate of home values growth continued to slow across the capital cities. Over the month, home values rose in Sydney, Brisbane, Perth and Hobart but fell across the remaining capital cities.

CoreLogic RP Data research analyst Cameron Kusher said this recent slowdown in the rate of capital growth is further highlighted by the fact that over the three months to November 2014, values rose by just 0.8 per cent across the combined capitals. Over the three months, values increased in Sydney, Brisbane and Perth but fell across all other capital cities.

Mr Kusher said the slowdown in capital growth is further evident when we take annual growth rates into account.

"Although combined capital city home values increased by a healthy 8.5 per cent over the 12 months to November 2014, the annual growth rate is now at its lowest level in the year - the rate of annual home value growth across the combined capital cities continued to slow after peaking at 11.5 per cent over the 12 months to April 2014," he said.

Excluding Hobart, across each capital city the annual rate of capital growth is now lower than its recent peak. Mr Kusher said this suggests that most cities have now moved past their cyclical peak.

"Importantly, this has become apparent in the two largest capital cities; Sydney and Melbourne, where annual value growth peaked at 16.7 per cent in April 2014 and at 11.9 per cent in January 2014 respectively."

"Although Sydney and Melbourne appear to have moved through their peaks, capital growth in these two cities have consistently been the main driver of value growth over the past 12 months.

Over the past year, Sydney home values increased by 13.2 per cent and Melbourne home values rose by 8.3 per cent. Sydney has seen much stronger growth over the year than Melbourne, however Melbourne’s growth remains somewhat higher than the third strongest performing city for capital growth, Brisbane. Brisbane home values increased by 6.0 per cent over the past year, while Hobart is the only other capital city to record annual value growth in excess of five per cent (+5.2%).

"Market indicators such as auction clearance rates remain quite strong, but also point to slightly weaker overall housing market conditions,” Mr Kusher said.

Auction clearance rates reduced noticeably across the two largest auction markets, Sydney and Melbourne, over recent weeks while clearance rates were typically recorded at around the high 70 per cent and mid 70 per cent mark respectively at the start of spring. Clearance rates are now sitting at a low 70 per cent in Sydney, and mid-60 per cent in Melbourne.

The number of new properties listed for sale across the combined capital cities continues to trend higher. Although this occurred throughout the last two months, Mr Kusher said it wasn’t until recently that the total number of property listings also started to trend higher.

"This may indicate a slower rate of sale and is indicative of mounting stock on the market."

"Although the annual growth rate in rentals remains at decade lows, recent weaker capital growth conditions have seen rental yields pushed slightly higher. Based on slow value growth rates, a significant response to market supply over the past two years is likely to result in fairly sluggish levels of rental growth over the coming year."

"With just one month left in 2014, it is looking as if this year will see a lower level of capital growth than last year. This year home values have risen by 7.0 per cent compared to growth of 9.8 per cent in 2013," Mr Kusher said.


0 comments | Posted by Charles Tarbey on 17/12/2014 at 12:00 AM | Categories:

RBA decision to assist in driving demand in Christmas season

Century 21, the largest real estate sales organisation in the Asia Pacific region, believes the Reserve Bank’s decision to leave the cash rate on hold at 2.5 per cent will assist in driving demand in the residential property market heading into the Christmas season.

 

“As 2014 comes to a conclusion, the Reserve Bank has yet again elected to keep the cash rate at the historically low level of 2.5 per cent,” said Chairman and Owner of Century 21 Australasia, Charles Tarbey.

 

“It’s my belief that this will assist in maintaining attractive borrowing conditions, and stimulate greater demand from buyers and sellers alike looking to finalise transactions before Christmas and the New Year.”

 

In their announcement, the Reserve Bank indicated that a lower exchange rate for the dollar and continued stable monetary policy will likely benefit the Australian economy.

 

The announcement came just days after the release of the CoreLogic RP Data Home Value Index results, which showed that median home values in Australia’s capital cities recorded a -0.3 per cent drop during November.

 

“This recent slow-down in dwelling price growth may be a sign that the market is continuing to moderate,” said Charles Tarbey.

 

“However, it’s my belief that we will see a number of buyers take advantage of attractive mortgage rates before the new year is upon us,” concluded Charles Tarbey.


0 comments | Posted by Charles Tarbey on 03/12/2014 at 12:00 AM | Categories:

How to have a stand-out summer garden

Despite the heat and humidity, summer can be a great time to head outdoors and tend to the garden. Because different plants flourish in different conditions, below are four helpful hints for ensuring your garden is a stand-out even as the mercury rises.

Know which plants withstand the heat: There are a number of plants tailor-made by nature to cope with hot, dry conditions. These are perfect for people living with water restrictions, or in very dry climates. Varieties like Euphorbia’s, Sedums, Lavenders, Rock Roses (Cistus), and perennial Statice (Limonium perezii) are very resistant. Australian natives can be strong performers in a drier climate, and some of the more popular varieties include Lomandra, low mounding Acacias like ‘Mini Cog’ and Grevilleas or grey-leaved plants like Lamb’s Ears (Stachys byzantina).

Know which plants prefer the cool: If you live in a cooler climate, now is a great time to get warm season vegetables like tomatoes, capsicums, eggplants, sweet corn and chillies into the ground. Perennial plants like Achilleas, Salvias, Rudbeckias, Gaillardias and Asters shine through during the warmer months and provide colour through the height of summer and often into autumn. It’s also nice to decorate summer entertaining areas with ornamental pots filled with brightly-coloured annuals like Petunias, Marigolds, Snapdragons and Impatiens.

Consider some fruit varieties: Miniature fruit trees like ‘Lots a Lemons’, a dwarf form of the (regular-sized) Meyer Lemon and ‘Nectazee’, a miniature nectarine tree that grows to just 1.5 metres tall with a big, juicy crop of fruit, are great growers during this time of year as long as they receive plenty of water.

Keep them hydrated: Plants seeded in summer need to be kept particularly hydrated, so watering them every day is of course a must. Young seedlings in particular can quickly wilt in the heat. It’s possible to help ease plants into their new home by applying a seaweed-based plant tonic every two weeks, which can help to promote strong healthy roots, and reduce stress from heat and drought. Also, applying a good layer of organic mulch around plants will help conserve moisture and reduce weed growth.


0 comments | Posted by Charles Tarbey on 01/12/2014 at 12:00 AM | Categories: