Aussie home owners are laughing.<\/p>\n
The Reserve Bank might\u2019ve just hoisted interest rates again, but that hasn\u2019t stopped either demand or prices from continuing to skyrocket according to the latest research from Aussie property data firms PropTrack and CoreLogic.<\/p>\n
According to the the November PropTrack Home Price Index, across Australia home prices have clambered on up to even more terrifying new heights, leaving the have-nots even further from a foot in the property market door, which hasn\u2019t budged an inch during the cycle of interest rate tightening.<\/p>\n
The national median home value climbed a further 0.22% in November to a record high, although the pace of growth slowed as more properties hit the market.<\/p>\n\n
All capitals, except Darwin, recorded price rises in November. Perth continued its streak with prices rising 0.74% month-on-month.<\/p>\n
This made Perth PropTrack\u2019s strongest capital throughout the month.<\/p>\n
Adelaide (+0.34%), Sydney (+0.32%) and Canberra (+0.32%) also saw strong growth.
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CBA\u2019s head of Australian economics Gareth Aird says home affordability \u2018has deteriorated significantly\u2019 throughout 2023.<\/p>\n
The average Aussie access to home borrowing has crashed by almost a full third, but at the same time property prices have easily moved beyond their previous peaks \u2013 circa April 2022 \u2013 just as a slow-reacting RBA began to start raising rates.<\/p>\n
\u201cThe usual relationship between new lending and home prices has broken down. Housing loan commitments have fallen by around 30% since May 2022,\u201d according to Aird.<\/p>\n\n
\u201cA decline of this magnitude would ordinarily be expected to be accompanied by an ongoing decline in home prices. But these are extraordinary times.\u201d<\/p>\n
Massive rates of immigration have seen Australia\u2019s population surge over the past year. And home building simply hasn\u2019t kept up.<\/p>\n
As a result, vacancy rates have dropped to record lows in most capital cities and the rental market is off in a world of madness all it\u2019s own.<\/p>\n
Also adding new pressure on home prices \u2013 a return and notable influx of foreign capital in the market.<\/p>\n
According to NAB\u2019s residential property survey the share of total market sales to foreign buyers in new housing markets increased for the fourth straight quarter.<\/p>\n
New sales to foreign buyers hit a near six-year high of 10.1% in Q3, NAB says.<\/p>\n
At least CBA agrees there\u2019s early signs prices growth nationally is easing \u2013 according to CoreLogic it was running at its softest monthly pace so far this year \u2013 while auction clearance rates have recently softened too.
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Meanwhile moving to the country and eating a lot of peaches remains an option, as although home values in both city and regional markets reached fresh peaks in November, capital cities saw stronger growth (+0.26%) than elsewhere (+0.12%).<\/p>\n
\u201cNational home price growth slowed in November, with the spring selling surge increasing choice for buyers.<\/p>\n
\u201cStrong housing demand, buoyed by record net overseas migration, tight rental markets, low unemployment and home equity gains, has worked alongside limited housing stock to offset the impacts of higher interest rates this year.<\/p>\n
\u201cDespite interest rates climbing again in November and the flow of listings hitting the market increasing, housing demand has remained strong and national prices have now risen for 11 straight months.\u201d<\/p>\n
Property prices reached new peaks in Sydney, Brisbane, Adelaide and Perth, in addition to regional areas across Queensland, South Australia and Western Australia.
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Home prices have proved resilient to the impact of higher interest rates this year \u2013 a trend that continued in November.<\/p>\n
PropTrack senior economist Eleanor Creagh said even though the number of houses for sale has risen, demand has easily kept pace.<\/p>\n
\u201cStrong housing demand, buoyed by record net overseas migration, tight rental markets, low unemployment and home equity gains, has worked alongside limited housing stock to offset the impacts of higher interest rates this year,\u201d Creagh said.<\/p>\n
While national home prices have hit a new record high, the pace of growth slowed as more properties came to market.<\/p>\n
National home prices climbed 0.22% in November to peak levels, bringing them up 5.53% so far this year and 1.29% above their previous peak recorded in March 2022.
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Although growth in Sydney has slowed, prices hit a record high in November, increasing 0.32%.<\/p>\n
Sydney is at the forefront of Australia\u2019s housing market resurgence, not only recouping the losses seen in 2022, but surpassing its previous peak in February 2022 by 1%.<\/p>\n
After falling 6.82% from February to November 2022, prices have now risen for 12 consecutive months and are up 8.40% from their low point in November 2022.<\/p>\n
Sydney prices are now up 8.27% so far this year and 1.00% above their previous peak recorded in February 2022, Eleanor says.<\/p>\n
\u201cMeanwhile, the sharp rise in construction costs and labour and materials shortages have slowed the delivery of new builds, hampering the supply of new housing.<\/p>\n
\u201cLooking ahead, price growth is expected to continue as the positive tailwinds for housing demand and a slowdown in the completion of new homes counter the sharp deterioration in affordability and slowing economy.<\/p>\n
\u201cHowever, prices are likely to lift at a slower pace than they have across 2023.\u201d<\/p>\n
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This could be both good and bad\u2026 so maybe take a seat those home-hunters who\u2019ve made it to the end of another horrible housing update.<\/p>\n
According to the same research team at PropTrack \u2013 more than a third of homes across the country are cheaper to buy than rent \u2013 based on a countrywide analysis of estimated purchase and rent prices.<\/p>\n
PropTrack senior economist Paul Ryan says the record pace of rent growth \u2013 with advertised rents up 14.6% over the past year \u2013 has offset higher buying costs in many regions.<\/p>\n
\u201cMore than a third of homes across Australia are cheaper to buy than rent. Favourable buying conditions remain despite a record pace of interest rate increases, and home prices increasing 36% since the pandemic\u2026 This shows that there are still opportunities for buyers across the housing market.\u201d<\/p>\n
Here\u2019s the bare bones:<\/p>\n
As of end November Queensland, Tasmania and Western Australia offer the highest proportion of homes that are cheaper to buy, so buying conditions are more favourable in Queensland, Tassie and WA<\/em> \u201cLooking to 2024, higher interest rates will challenge housing affordability for many. This may slow price growth and rebalance buying conditions across the market,\u201d Paul adds.<\/p>\n <\/span><\/p>\n The post Richer, higher, faster: Aussie homeowners just got an early Xmas present<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"
\nIn WA, more than three out of four homes are cheaper to buy than rent<\/em>
\nThis suggests stronger price growth conditions will persist in these states, a trend seen since the onset of the COVID-19 pandemic, which may reduce the share of homes cheaper to buy<\/em>
\nBuying conditions remain more favourable for units \u2013 with over half (55%) estimated to be cheaper to buy than rent (while circa 29% of houses across the country are cheaper to buy)<\/em>
\nMany of the capital cities where buying conditions are most favourable reflect recent unit development, where prices are low compared with rents following recent record rent growth<\/em><\/p>\n