May Report.
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October report.
From our corporate director. Dean O’Brien
Welcome to our May market report.
Welcome to winter and with that we have the May numbers from Corelogic now in so we can dissect the growth the market has seen over the last 31 days. Price Growth in Metropolitan Melbourne for May exceeded that of Regional Victoria for the first time in over 12 months with Metro posting a Combined Dwelling increase of 1.8% whereas Regional posted 1.7%. Price growth for Metro Melbourne over the last 12 months has now just hit 5% which is still half of most other capital cities, Sydney is sitting at 11.2% Brisbane at 10.6%, Adelaide at 11.8%, Hobart at 16.5 and Darwin at an amazing 20.3% for the last 12 months. Regionally the annual price growth is at 13.1% with the median house price now tipping over $503,000 for the first time ever. Metro median house prices now sit over $908,000. On the other side of the coin rental price growth isn’t tracking as good and particularly for units, in Metro Melbourne we have seen prices growth worsen over the month with annual prices now down 7.7% on 12 months ago, houses on the other hand are tracking slightly ahead of inflation at 1.5% annually.
Across the OBrien network we had another very busy month, we sold 364, leased 202 and auctioned 115 properties for the month. Here are the main talking points and news edits for the week. • House approvals have scaled new heights with total council approvals to build new houses rising by 3.4 per cent to record highs this will see demand for building materials continue to soar. • We saw the biggest lift in home building in 6 years. Construction rose by 2.4 per cent in the March quarter - the most in 3½ years. Home building rose by 5.1 per cent in the quarter with renovations up by 10.8 per cent to record highs. • We have also seen the biggest lift in business investment in 9 years. Spending on buildings and equipment rose by 6.3 per cent in the March quarter the biggest lift in spending in almost nine years. • And lastly as widely expected the Reserve Bank held rates at 0.10% at its board meeting yesterday. All eyes will now be on the minutes of the meeting to see if there has been any softening on the RBA's stance that rates would not increase until 2024. That’s all for this month Dean O’Brien
We sell more. A snapshot of last months sales.
Average sale price.
Sale price. High.
$715,200 Address
Low.
$1.90m $250k
Number of suburbs sold in.
34
Sale Price
Suburb
2/5 Wiltshire Avenue
Bayswater
2
1
2
$632,000.00
48 Victoria Road
Bayswater
3
1
2
$895,000.00
2/4 Elm Street
Bayswater
2
1
2
$635,000.00
3/306 Canterbury Road
Bayswater North
3
2
2
$690,000.00
1/101 Old Princes Highway
Beaconsfield
3
2
1
$615,000.00
1/241 Soldiers Road
Beaconsfield
4
3
2
$722,500.00
6 South Ridge Court
Beaconsfield
5
4
3
$1,340,000.00
30 Leonard Avenue
Berwick
3
2
1
$625,000.00
2/58 Palmerston Street
Berwick
3
1
1
$665,000.00
17 Bangalay Place
Berwick
3
2
2
$687,000.00
20 Saintly Grove
Berwick
3
2
2
$707,000.00
52A Hancock Drive
Berwick
3
2
2
$740,000.00
58 Grices Road
Berwick
4
2
2
$777,000.00
1 Normanton Close
Berwick
4
2
2
$815,000.00
13/25 Canberra Avenue
Berwick
3
2
2
$875,000.00
91 Soldiers Road
Berwick
4
2
2
$900,000.00
26 Glenview Rise
Berwick
4
2
2
$1,060,000.00
5/24 Stonehaven Ave
Boronia
3
2
2
$625,000.00
2/11 McDonald Cres
Boronia
2
1
1
$660,000.00
4 Daffodil Rd
Boronia
3
1
2
$750,000.00
42 Hazelwood Street
Boronia
5
2
2
$952,000.00
8 Ethel St
Boronia
3
2
1
$965,000.00
48 Stringyleaf Street
Botanic Ridge
4
2
1
$540,000.00
We sell more. A snapshot of last months sales.
Average sale price.
Sale price. High.
$715,200
Low.
$1.90m $250k
Number of suburbs sold in.
34
Sale Price
Address
Suburb
7 Espie Court
Botanic Ridge
3
2
2
$820,000.00
15 Bellis Circuit
Botanic Ridge
4
2
2
$910,000.00
6 Sparks Court
Botanic Ridge
4
2
2
$988,000.00
64 Royal St Georges Chase
Botanic Ridge
4
4
2
$1,187,500.00
218/15-21 Harrow Street
Box Hill
2
2
1
$435,000.00
2023/850 Whitehorse Road
Box Hill
2
1
1
$488,000.00
10/37-39 Rose St
Box Hill
2
2
1
$555,000.00
42 Tucker Boulevard
Carrum Downs
4
2
2
$710,000.00
4 Mena Place
Clyde
21 Hekela St
Clyde North
3
2
1
$570,000.00
33 Timble Way
Clyde North
3
2
2
$590,000.00
23 Reflections Boulevard
Clyde North
4
2
2
$915,000.00
1/4 Mundaring Drive
Cranbourne
2
2
1
$490,000.00
37 Huey Circuit
Cranbourne
4
2
2
$930,000.00
13 Blue Bush Way
Cranbourne East
3
2
2
$567,000.00
10 Hewitt Street
Cranbourne East
4
2
2
$635,000.00
40 Tankard Drive
Cranbourne East
4
2
2
$700,000.00
5/7-9 Elizabeth Street
Cranbourne North
3
1
2
$440,000.00
5 Frances Crescent
Cranbourne North
3
2
0
$600,000.00
27 Burford Way
Cranbourne North
4
2
2
$609,000.00
2 Cumquat Court
Cranbourne North
4
2
0
$620,000.00
50 Linden Tree Way
Cranbourne North
4
2
2
$640,000.00
8 Prescott Drive
Cranbourne North
4
4
2
$712,000.00
19 Sussex Avenue
Cranbourne North
4
2
2
$730,000.00
LAND
$350,000.00
We sell more. A snapshot of last months sales.
Average sale price.
Sale price. High.
$715,200 Address
Low.
$1.90m $250k
Number of suburbs sold in.
34
Sale Price
Suburb
4 Faringdon Crescent
Cranbourne North
4
2
2
$810,000.00
9 Lady Penrhyn Close
Cranbourne West
3
1
2
$510,000.00
9 Glenaire Cres
Cranbourne West
3
2
2
$605,000.00
13 Bronhill Crt
Cranbourne West
3
2
2
$605,500.00
16 Jasa Crescent
Cranbourne West
3
2
2
$610,000.00
49 George Frederick Road
Cranbourne West
4
2
2
$655,000.00
411/80 Cheltenham Rd
Dandenong
2
1
1
$360,000.00
15 Truslove Court
Endeavour Hills
5
2
2
$1,070,000.00
17/3-5 Milton St
Ferntree Gully
3
2
2
$565,000.00
42 Lightwood Drive
Ferntree Gully
3
1
1
$687,000.00
17 Richborough Grove
Ferntree Gully
4
3
2
$865,000.00
22/259 Canterbury Road
Forest Hill
1
1
1
$330,000.00
104 Skye Road
Frankston
3
2
2
$560,000.00
15 Lacenet Avenue
Frankston North
3
1
0
$355,000.00
13 Lacenet Avenue
Frankston North
3
1
0
$388,000.00
32 Lauren Drive
Hampton Park
3
1
2
$510,000.00
18 Horizon Boulevard
Hampton Park
3
2
2
$670,000.00
1 Villawood Drive
Hastings
2
1
0
$520,000
16/300 High Street
Hastings
4
2
2
$576,500
3 Hodgins Road
Hastings
3
2
2
$620,000
41 Georgia Way
Hastings
3
2
2
$650,000
16 Beilby Court
Hastings
4
2
2
$675,000
2 Mistletoe Close
Knoxfield
5
3
2
$1,305,000.00
182 Station street
Koo Wee Rup
3
2
2
$640,000.00
We sell more. A snapshot of last months sales.
Average sale price.
Sale price. High.
$715,200 Address
Low.
$1.90m $250k
Number of suburbs sold in.
34
Sale Price
Suburb
9 Bailey Boulevard
Koo Wee Rup
4
2
2
$651,000.00
6/520 Mitcham Road
Mitcham
2
2
1
$685,000.00
9/11 Sylvanwood Crescent
Narre Warren
3
2
1
$585,000.00
13 Rosemont Drive
Narre Warren
3
1
2
$585,000.00
8 Highhland Crescent
Narre Warren
4
2
2
$690,000.00
14 Abelia Rise
Narre Warren
4
2
2
$705,000.00
34 Meadow Wood Walk
Narre Warren
4
2
2
$846,000.00
23 Rosemont Drive
Narre Warren
4
2
2
$668,000.00
2 Lighthorse Crescent
Narre Warren South
3
2
2
$630,000.00
4 Toulouse Terrace
Narre Warren South
4
2
2
$900,000.00
6-7 Carrington Court
Narre Warren South
4
3
10
$1,900,000.00
13 Columbia Drive
Officer
3
2
2
$660,000.00
11 Toddington Avenue
Officer
4
2
2
$1,062,000.00
8 Newbury Street
Pakenham
13/137 Ahern Road
Pakenham
3
2
2
$445,000.00
98 Melissa Way
Pakenham
3
2
2
$490,000.00
26 Caversham Drive
Pakenham
3
2
2
$590,000.00
24 Elwood Ave
Pakenham
3
2
2
$655,888.00
1 St Leonard Way
Pakenham
5
3
4
$868,000.00
54 Oakden Street
Pearcedale
4
2
6
$885,500.00
1905 Dandenong Hastings Road
Pearcedale
3
1
6
$1,350,000.00
1502/105 Clarendon Street
Southbank
1
1
0
$350,000.00
51 Democrat Drive
The Basin
3
2
2
$800,000.00
11 Monomeith St
Tooradin
2
1
3
$560,000.00
LAND
$250,000.00
We sell more. A snapshot of last months sales.
Average sale price.
Sale price. High.
$715,200 Address
Low.
$1.90m $250k
Number of suburbs sold in.
34
Sale Price
Suburb
5 Lews Place
Tooradin
4
2
6
$900,000.00
8 Skipton Court
Wantirna
4
2
4
$1,320,000.00
16 Chesterfield Avenue
Warragul
3
2
2
$850,000.00
We lease more. A snapshot of last months leases.
Average weekly rent.
$450 Address
Average monthly rent.
$1960
Rental price p/w. High.
Low.
$990
$255
Number of suburbs leased in.
p/w
Leased price p/m
Leased price
Suburb
21
17 Kevin Close
Beaconsfield
4
2
0
$440.00
$1,912.00
1/23 Farborough Way
Berwick
3
2
2
$390.00
$1,695.00
1/5 Reserve Street
Berwick
3
1
2
$400.00
$1,738.00
10 Sing Crescent
Berwick
3
2
2
$440.00
$1,912.00
9 Pinewood Crescent
Berwick
3
2
6
$440.00
$1,912.00
9 Jason Close
Berwick
4
2
1
$450.00
$1,955.00
6 Theodore Terrace
Berwick
3
2
2
$460.00
$1,999.00
38 Marlborough Road
Berwick
4
2
2
$480.00
$2,086.00
6 Bergamont Place
Berwick
4
2
2
$480.00
$2,086.00
31 McNaughton Crescent
Berwick
4
2
2
$500.00
$2,173.00
5 Jay Rise
Berwick
5
2
2
$710.00
$3,085.00
22 Saddleback Road
Botanic Ridge
4
2
2
$400.00
$1,738.00
14 Honeybrook Lane
Clyde
3
2
2
$400.00
$1,738.00
1 Nirvana Way
Clyde
3
2
2
$430.00
$1,868.00
26 Freiberger Grove
Clyde
3
2
2
$450.00
$1,955.00
56 Bowler Avenue
Clyde
4
2
2
$450.00
$1,955.00
10 Yarra Street
Clyde
4
2
2
$430.00
$1,868.00
23A Selandra Boulevard
Clyde North
3
2
2
$360.00
$1,564.00
10 Maddock Drive
Crabourne East
3
1
1
$380.00
$1,651.00
165 Camms Raod
Cranbourne
3
2
2
$405.00
$1,760.00
27 Blaxland Avenue
Cranbourne
3
1
2
$420.00
$1,825.00
We lease more. A snapshot of last months leases.
Average weekly rent.
$450 Address
Average monthly rent.
Rental price p/w. High.
$1960
Low.
$990
$255
Number of suburbs leased in.
Leased price
Suburb
p/w
21
Leased price p/m
5 Crystal Gardens
Cranbourne East
3
2
2
$350.00
$1,521.00
40 Tankard Drive
Cranbourne East
4
2
2
$480.00
$2,086.00
37 Prosperity Avenue
Cranbourne North
4
2
2
$480.00
$2,086.00
84 Alisma Boulevard
Cranbourne North
4
2
2
$450.00
$1,955.00
20 Roslyn Road
Cranbourne South
4
2
2
$990.00
$4,302.00
60 Miralie Way
Cranbourne West
4
2
2
$500.00
$2,173.00
10 Joyce Street
Cranbourne West
3
1
2
$365.00
$1,586.00
22 Garside Street
Dandenong
3
1
2
$390.00
$1,695.00
2 Bass Place
Endeavour Hills
3
2
3
$430.00
$1,868.00
1 Thomas Court
Hallam
3
2
2
$450.00
$1,955.00
44 Innes Court
Narre Warren
3
2
2
$440.00
$1,912.00
83 Fountain Drive
Narre Warren
3
1
2
$440.00
$1,912.00
1A Tingle Close
Narre Warren
3
2
1
$435.00
$1,890.00
11 Azimuth Close
Narre Warren South
5
3
2
$750.00
$3,259.00
2/13 Joy Parade
Noble Park
2
1
1
$255.00
$978.00
13 Cherrington Avenue
Officer
3
2
2
$415.00
$1,803.00
10/7 Melissa Way
Pakenham
3
1
2
$340.00
$1,477.00
10/1172 Burwood Highway
Upper Ferntree Gully
2
1
1
$350.00
$1,521.00
425 Burwood Highway
Vermont South
3
2
2
$450.00
$1,955.00
June interest rate announcement: RBA holds cash rate at record low of 0.1 per cent The Reserve Bank of Australia agreed, at its monthly meeting on June 1, to maintain the cash rate at its record low of 0.10 per cent. The move comes as consumer confidence dipped from its 11-year high in May but remains very strong. The largest falls are from Victoria, Western Australia, and Queensland, while NSW continues to be the most confident about the post-pandemic economic recovery. “The Reserve Bank won’t want change any time soon,” said Chris Lioutas, chief investment officer with PSK Financial. “They’ll be watching the data closely, especially with everyone worried about inflation at the moment and over-reacting to the possibility.” “We’ll get spikes of inflation in the short term with supply shortages happening, either with labour or goods and services, and the US has a seen a 0.9 per cent rate last month which overshot expectations, and the Bank has flagged they’d like to see a rise here. But we’re still well below inflation targets, so it’s all watch and see.” All the world’s eyes at the moment are on Iceland, which delivered the first policy tightening in Western Europe to contain inflation and a soaring housing market, with the Bank of Canada also reducing some support and the New Zealand central bank flagging potential rate rises from mid-2022. However, other major central banks remain committed to continued policy stimulus as they mainly see any near-term inflation as being simply transitory. “We’ll see a breakout in inflation as a result of the budget initiatives in subsidising childcare and tax breaks when they go into circulation, but they’ll be transitory, and most people will see that,” said former Labor trade minister Craig Emerson, head of Emerson Economics. “We won’t see any change in interest rates until unemployment is down to below 4 per cent, and that won’t happen for three or four years. “It’s only then that we’ll see wages go up and inflation rise to projected levels. In the meantime, inflation will remain subdued.” Despite Australia’s soaring housing market, the RBA wants to hold the course steady.
This, combined with state and federal governments committed to maintaining the strength of the current market, assures confidence for sellers and purchasers of both residential investment and commercial investment.” Mr Emerson says the RBA has consistently said house prices are not its concern. “They’ve made that abundantly clear,” he said. “If they do become a problem, they’d argue for other policy levers, like macro-prudential regulations that aren’t in the domain of the Reserve Bank.” Since the first waves of COVID-19 petered out, the economy has performed much better than most expected, points out Besa Dada, the chief economist of Westpac Business Bank and secretary of the Australian Business Economists’ Association. And if that bounceback continues so strongly, and there are any shifts in the housing market, she predicts that there’s a risk that rates could be raised before 2024, but not until late in 2023 at the earliest. “Investor lending has picked up considerably, with a very strong pace of growth,” said Ms Dada. “Now they’ve joined the party, the Reserve Bank will be eyeing any changes in the housing market closely and the acceleration of growth in prices.” “They told us last month that in July, they’d make the decision around yield curve control, with the program selling or buying government bonds to get the bond yield rate over 1.1 per cent. So, we haven’t been anticipating any fresh information around that yet. Instead, they’ve been looking at the type of borrowing taking place.” The latest figures from CoreLogic show that property investor financing was up 17.7 per cent in March compared with January, pushing up the share of financing secured by investors to 25.9 per cent in the month. That’s in stark contrast to the recent low of 23.1 per cent in January. But most indicators look promising. Local and global equity markets have both risen lately, for instance, ignoring inflation concerns and instead focusing on a confirmation of strong US economic growth and central banks committing to policy support. In addition, Australian retail trade rose by 1.1 per cent in April – following a 1.3 per cent rise in March – with spending on eating out showing a strong 2.5 per cent rise, which was particularly strong in NSW, said Mr Lioutas.
Ray Ellis, CEO of national agency First National Real Estate, says that’s a good tactic. “Buyers throughout Australia have become accustomed in recent years to a regime of low interest rates on the expectation, particularly by the Reserve Bank, that there will be no substantial alteration to interest rates until 2024,” he said.
The quarter also saw a very strong 5.1 per cent rise in residential construction in all states except Victoria, boosted by work done for detached houses and renovations. Public engineering also saw a solid 3.1 per cent rise.
“This provides one of the strong conditions needed for anyone seeking to enter the property market, particularly first-home buyers.
“Business investment is clearly accelerating, supported by government and central bank policy along with tax incentives,” said Mr Lioutas. Article Source: domain.com.au
Refinance, upgrade or both? What home owners should do while rates are still low Upgrading to a larger, better-positioned, or more valuable home can allow home owners to take advantage of surging prices, but a booming market can make the move challenging.
An economic recovery that exceeds expectations and increases inflation could potentially bring rate hikes forward.
While it might be easier to achieve a great price when selling, it’s just about impossible to score a bargain in the current market, considering countless upgraders – who have put off a move for several years – are diving in at once.
“The RBA has indicated the official cash rate will remain low for some time,” says Domain Home Loans director and Lendi cofounder David Hyman. “However, the economy is performing better than many expected, which could impact the outlook for rates if sustained.”
“It’s when demand outstrips supply that the prices are high,” says Real Estate Institute of NSW president Leanne Pilkington. “We’ve got a couple of years of suppressed demand happening right now.”
“One thing to remember is that banks can raise the rates they charge out of cycle and on their own accord at any time. Record-low rates won’t last forever, and we are already seeing some lenders raising rates.”
“Eventually, that demand is going to start to ease off, but even if the clearance rates are down in the mid-70s, it’s still a really strong market.”
Take advantage
When prices rise across the board, the gap between the value of a home owner’s current property and a more expensive one grows, potentially pushing the most desirable properties out of reach. The proportion of upgraders who buy before selling tends to increase when prices rise. Home owners are more confident they’ll achieve a strong result selling their original home, and many prefer selling quickly after buying rather than rushing to find a home after selling. Home owners who manage to take the leap could realise both the lifestyle benefits that upgrading can bring and the financial rewards of increased exposure to a rising market. “History shows over a long period of time, getting a bigger, better quality property in a better location does pay off in terms of the house price gains,” says economist and Market Economics director Stephen Koukoulas.
There are ways both new buyers and upgraders can take advantage of the low-rate environment and prepare for the future, Koukoulas says. “If we do get an interest rate tightening cycle, you do expect rates to go up by a percentage point or two. See what sort of an impact that has on your monthly repayments.” “If you’ve got your foot in the door or you’re upgrading, enjoy these low interest rates and use this opportunity to try and reduce some of your debt.” Borrowers still paying outdated interest rates should shop around, as refinancing can pay off even if an upgrade is on the agenda, Hyman says. “Getting ready to upgrade can take longer than expected, so why wouldn’t you want to be saving more on your repayments during that time?” Home owners in a secure financial situation who aren’t planning on moving could consider fixing part of their loan, with rates below 2 per cent available.
Interest Rate Outlook Rising prices aren’t the only factor for upgraders to consider before making a move. The latest statements from the Reserve Bank of Australia suggests home owners could expect the ultralow interest rates that have fueled rising prices to increase by 2024. “Sometime in the next few years, interest rates will be higher than they are today,” Koukoulas says. “With the RBA saying they’re going to keep the three-year government bond yield at 0.1 per cent, that’s probably within the timeframe of when official rates could go up.”
“If you want to fix part of your loan, make sure you’ve negotiated the best variable rate possible first because once you’re fixed, you won’t have the same bargaining power on that variable component,” Hyman says. Borrowers choosing to fix need to anticipate potential rate increases that could occur during their fixed term, Koukoulas says, or risk a sudden jolt to their finances if rates jump a few percentage points. “Some of these products are fabulously attractive,” he says. “But plan for when these things end.” Article Source: domain.com.au
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