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Housing market cooling in Sydney and Melbourne, latest index data shows
House price growth in Australian capital cities moderated in March with market conditions slowing in Sydney and Melbourne, according to the latest index. The remaining capital cities recorded a range of outcomes from small value increases to moderate declines, the data from the CoreLogic RP index shows. Overall prices increased by 0.2% to take capital city home values 1.6% higher over the first quarter of 2016. The quarterly increase in home values was broad based across the nation’s capitals, with Perth seeing a fall of 0.9% and Brisbane a fall of 0.1%. They were the only two cities to record negative movements in dwelling values over the past three months. ‘The March quarter rise in capital city dwelling values is in stark contrast to the first quarter of 2015, when values increased by 3% which is almost double the current pace of quarterly growth,’ said CoreLogic RP Data head of research Tim Lawless. ‘However, compared with the final quarter of 2015 when capital city dwelling values were down 1.4% the housing market has shown a modest rebound in growth which is well below the strong capital gains recorded over the first half of 2015,’ he explained. But he added that the annual pace of home value appreciation across Australia’s capital cities highlights the slowing growth trend and year on year growth across the capital cities has now reached its lowest point in 31 months, with values up by 6.4% over the past 12 months. Furthermore, no Australian capital city has recorded an annual growth rate in the double digits over the past year. Melbourne has seen the strongest annual growth, with values up by 9.8% over the past 12 months. ‘The housing market has been losing momentum since July last year, when capital city dwelling values were increasing at the annual rate of 11.1%,’ Lawless pointed out. Overall the median price across the capital cities is now $550,000, a rise of 0.2% month on month, up 1.6% quarter on quarter and 6.4% year on year. A breakdown of the data shows that the median price in Sydney is $730,000, up 1% month on month, 2% quarter on quarter and 7.4% year on year while in Melbourne it is $560,000, down 0.6% month on month, up 2.2% quarter on quarter and 9.8% year on year. In Brisbane the median price is $470,000, down 1.2% on a monthly basis, down 0.1% quarter on quarter but up 4.5% year on year while in Adelaide the median is $415,000 with a 0.5% monthly rise, 2.4% growth quarter on quarter and up 3.2% year on year. In Perth the market is actually recovering with a median price of $495,000 which is up 1.2% month on month but down 0.9% quarter on quarter and own 2% year on year with Darwin seeing a similar picture with a median price of $505,000 which is up 2.1% month on month and 2.4% quarter on quarter but down 1.8% year on year. In Hobart the… Continue reading
First UK house price estimates published ahead of new national index in June
The first estimates for the new single official UK House Price Index which will be first published in its entirety in June 2016, have been published. The new improved index has been developed jointly with other official producers of house price statistics following a review by the National Statistician, uses data from, amongst others, the Land Registry and Council of Mortgage Lenders. By using these comprehensive datasets together, as well as by employing the best internationally agreed methods, the new UK HPI aims to give the best and most detailed picture of the UK housing market. For the most recent period, December 2011, the new UK HPI shows an average price level of £185,000 for England and Wales. This is lower than the price recorded by the current Office of National Statistics index for England at £222,000 for the same period. But it is above the equivalent price levels recorded by the Land Registry for England and Wales at £157,000, the Halifax for the UK at £157,000 and Nationwide for the UK at £163,000. The main reason for the decrease in price levels from the ONS index to the new UK index is the use of the geometric mean, which reduces the impact of very high value properties on the headline data. Over the period from 2003 to 2011, which is the longest comparable period available, the average annual growth is 5.2% for the ONS index for England, 4.6% for the Land Registry index for England and Wales, 4.7% for the Halifax for the UK, 5.3% for Nationwide for the UK and 6.1% for the new UK index for England and Wales. The inclusion of cash sales and improved weights are both contributing to the increased growth seen in the new UK index, according to ONS statistician Chris Jenkins. ‘By combing different data sets and using the best internationally agreed methods, the new UK HPI will give the best possible picture of the changing UK property market,’ he explained. ‘For the first time, consistent high quality data will be available for both national and local areas, helping policy makers to make better decisions,’ he added. Continue reading
New scheme launches to help UK home owners susceptible to flooding
A scheme has been launched in the UK to help people with properties in areas susceptible to flooding to get affordable home insurance. Flood Re is described by the Association of British Insurers (ABI) as a word first. It is not a home insurer but will work behind the scenes with existing insurance companies so that people with home in are most likely to flood can shop around to find policies with affordable premiums and excesses. ‘It’s great to see so many insurers ready to make use of Flood Re from launch. The launch is just the start of a process and we know more providers will join them over time, bringing even more choice for people with homes at risk of flooding,’ said James Dalton. Director of general insurance policy as the ABI. ‘Insurance is an essential safeguard for your home and belongings. People in flood risk areas not being able to access affordable cover was a major concern, and why the insurance industry went to great lengths to design and create this world-first solution along with Government,’ he added. But research by home insurance expert Admiral suggests more needs to be done to educate those affected as only one in seven of have heard of the Flood Re scheme. It found that despite 67% believing severe flooding events will become more frequent in coming years, just 15% said they worry about their own home flooding. Relatively few people surveyed, just 7% said they have suffered a flood in the past, but it’s clear that for those that were, it was devastating. Admiral asked them the worst thing about their own flooding experience and 21% said the destruction of their furniture and carpets while 16% said it was the emotional stress that the flood caused. ‘Although Flood Re won’t prevent flooding, it is good news for home owners who have been previously flooded or who have had difficulty getting insurance because their home is at risk of flooding. However our research shows only 15% have heard of the scheme,’ said Noel Summerfield, head of household at Admiral. Flood Re works by charging all home insurers a fee and it’s this fee along with other charges to insurers using the scheme that pays for any associated flood claims. It is launched at a time when the Environment Agency estimates that one in six homes are at risk of flood in England alone. Most experts agree that incidents of flooding are likely to become more commonplace. Not everyone Admiral surveyed would be put off buying a house if there was a risk it might flood, only 62% said they would never consider buying a home that was at risk of flooding, no matter its price. Some 12% said they would consider buying a home if the price it was up to 30% below its true cost. While 29% would do it if they could get up to 50% off its true cost. However a house that is prone to… Continue reading
