Article of Interest from MCG Property Surveyors for your perusal and information:-
October represented the first month-on-month decline in house prices since May 2012
The RP Data-Rismark Home Value Index results for October recorded the first month-on-month decline since May 2012, with the eight capital city aggregate index falling by -1.0 per cent over the month. The fall was broad-based, with falls being experienced across each of the capital cities apart from Perth and Darwin. However, it’s not fair to say that the housing recovery has stalled or that better results aren’t on the way. One interesting index which paints a positive picture is the consumer sentiment index. The confidence level among Australian consumers (as measured by the Westpac-Melbourne Institute Consumer Sentiment Index) has been on an upwards trend since April this year, and over November the index recorded a sharp rise to reach the highest level since April 2011. RP Data are showing an 85% correlation between the consumer sentiment index and the number of transactions within the housing market. They’ve found that high confidence coincides with high transaction volumes and vice versa. Evidence of this is shown in their graphic representation below:
Confidence readings are currently highest in New South Wales, Victoria and Western Australia, where the index is now tracking higher than 100. One component of the Consumer Sentiment Index is the ‘time to buy a dwelling index’, which has shown a significant improvement. The national index is now showing the highest reading since September 2009 and most of the state level indices are approaching their 2009 highs as well.
The indicators point to the fact that the Australian housing market has moved out of the down phase of the cycle, and there is mounting evidence that conditions will continue to improve. Improvements in average selling time, vendor discounting and auction clearance rates are all positive signs. Despite the October fall in the RP Data-Rismark Home Value Index, the evidence is still showing that we’re experiencing a housing recovery.
Also, here is the link to the Selling Guide website specifically set up for our sellers.
Linda & Carlos Debello
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