February Report
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From our corporate director
Dean O’BrienHi All,
In February, the National Home Price Index, as reported by CoreLogic, saw a notable 0 6 percent increase, marking the most substantial monthly rise since October 2023 This upswing in early 2024 is particularly encouraging for homeowners nationwide, especially following a 0 4 percent uptick the previous month Across capital cities, Perth continues to stand out, boasting a remarkable 1 8 percent growth rate over the month Additionally, Adelaide and Brisbane demonstrated robust performance with growth rates of 1 1 percent and 0 9 percent respectively Despite this, Melbourne lagged behind with a modest 0 1 percent growth rate, yet it remains a prime location for advantageous property acquisitions
The upcoming weekend in Melbourne anticipates 1300 homes scheduled for auction, representing a 40.2 percent increase from the same period last year. Last weekend saw an even larger auction turnout with 1457 properties, achieving a respectable clearance rate of 64.7 percent. This surge in listing and sales volumes, notably attributed to the early Easter holidays, underscores heightened market activity compared to typical seasonal trends.
Economically, there's a noticeable deceleration, which bodes well for both investors and mortgage holders The January Consumer Price Index (CPI) released on February 28 revealed a drop in the annual inflation rate to 3 4 percent, likely eliciting satisfaction from the new Reserve Bank Governor Moreover, recent consumer spending figures indicate a decrease of 2 7 percent in December, signaling restrained expenditure Employment data released this week shows a slight uptick in unemployment to 4 1 percent, marking the first time in two years that the rate has exceeded 4 percent
Similar to the real estate market, the Australian stock market has experienced a strong start to 2024, surpassing previous all-time highs in January and again in February's closing days
Regional Victoria has also witnessed growth in both housing and unit prices during February, hinting at a potential uptick in growth for regional cities throughout 2024
Traditionally, rental prices observe an upsurge in the first quarter of each new calendar year, driven by factors such as job relocations, cadetships, internships, university placements, and fresh starts, which elevate demand in the rental sector. Consequently, it's expected that this heightened demand will translate into rental price increases over the next 2 to 3 months.
As we conclude this March update, it's essential to note that the information provided is of a general nature. For personalized advice tailored to your specific circumstances, it's advisable to seek independent legal, financial, taxation, or other professional advice Regards,
Dean O'Brien Corporate DirectorFebruary report
We sell more.
A snapshot of last moths sales
- $748,000
$595,000 - $654,000 $1,050,000 - $1,155,000
$730,000 - $800,000
$695,000 - $764,500 $690,000 - $750,000
$770,000 $1,085,000 $723,000 $599,999 $1,100,000 $780,000 $717,000 $728,000 $840,000 $680,000 $930,000 $853,000 $1,020,000 $1,002,000 $1,125,000 $549,000 $720,000 $780,000 $650,000 $1,230,000 $1,280,000 $640,500 $620,000 $745,000 $440,000 77 41 45 23 6 24 16 39 44 28 9 90 40 31 1 8 52 45 26 31 41 85 17 8 47
Sale price High Low Average days on market $300K 47 Average sale price $2.5M $796,650 Address Price range Sale price Days on market Number of buyers Suburb 3 Kurnwill Place 1/18 Maple Street 6/16 View Road 11/235 Canterbury Road 81 Burdekin Avenue 1/6 Hair Court 21 Kevin Close 6 Cooma Court 5 Duckworth Close 3 Jumbuck Court 14 Warrock Court 135 Moondarra Drive 66 Montpelier Drive 6 Bull Finch Way 7 Roundhay Court 19/5-17 William Road 57 Meridian Circuit 2 Cottesmore Court 7/1 Iris Crescent 172 Settlers Run 27 Batesford Road 8 Fortitude Circuit 17 Foote Way 20 Roma Avenue 8B Normanby Street Berwick Bayswater Bayswater Bayswater North Bayswater North Beaconsfield Beaconsfield Berwick Berwick Berwick Berwick Berwick Berwick Berwick Berwick Berwick Berwick Boronia Boronia Botanic Ridge Chadstone Clyde Clyde Cranbourne Cranbourne 4 4 3 2 4 3 3 3 4 3 3 4 4 3 3 2 3 3 2 4 2 4 3 4 2 2 3 3 1 2 3 2 2 2 1 2 2 2 2 1 1 2 1 2 2 1 2 2 2 1 2 2 1 1 6 1 1 1 2 4 2 2 2 2 2 1 2 2 1 4 0 2 2 2 1 $750,000
$1,000,000
$680,000
- $825,000
- $1,100,000
$790,000 - $860,000 $675,000 - $725,000 $900,000 - $990,000 $797,000 - $875,000 $1,020,000 $995,000 - $1,094,500 $1,125,000 $520,000 - $570,000 $695,000 - $760,000 $750,000 - $825,000 $620,000 - $670,000 $1,230,000 $1,095,000 - $1,200,000 $630,000 - $690,000 $590,000 - $640,000 $690,000 - $759,000 $440,000 - $470,000 58 41 14 29 6 48 18 15 41 61 19 92 23 27 0 3 21 22 12 97 28 112 79 18 43
We sell more.
A snapshot of last months sales
$617,500
$710,000 - $770,000
$700,000 - $770,000 $610,000 - $670,000 $1,900,000 $590,000 - $650,000 $885,000 - $945,000
$820,000 - $880,000 $1,650,000 - $1,750,000 $530,000 - $580,000 $610,000 - $670,000
$750,000 - $825,000 $850,000 - $915,000 $758,000
$617,500 $750,000 $750,000 $673,000 $1,900,000 $625,000 $885,000 $860,000 $1,700,000 $560,000 $630,000 $845,000 $885,000 $758,000 $702,500 $725,000 $770,000 $1,620,000 $1,650,000 $710,000 $1,240,000 $522,500 $715,000 $630,000 $540,000 $1,430,000 $1,070,000 $768,888 $1,340,000 $1,380,000 40 1 13 42 16 28 57 37 9 36 9 73 4 10 40 61 49 33 1 19 23 1 23 1 33 18 39 14 23 89
0
Address Price range Sale price Days on market Number of buyers Suburb 20 Rouse Street 6 Manor Court 4 Flax Court 3 Tad Court 6 Walter Way 7 Saxon Road 12 Jamboree Avenue 123 Casuarina Drive 55 Mont Albert Road 2/17 Linmac Drive 16 Spring Road 10 Pioneer Way 20 Baker Street 26 Rodeo Drive 4 Harlaw Court 11 Winnie Court 5 Jennifer Court 47 Halcyon Way 23-24 Eden Grove 4 Heavenly Crescent 20 Fenton Crescent 33 Gardenia Street 13 Revelstoke Crescent 9 Rushgate Street 10 Titan Lodge Walk 570 Gembrook Road 15 Alma Road 35 Tooradin Station Road 5 Burdett Street 1 Dalwood Court Cranbourne Cranbourne East Cranbourne North Cranbourne North Cranbourne South Drouin Frankston South Frankston South Garfield Hampton Park Junction Village Kilsyth South Lang Lang Lang Lang Langwarrin Narre Warren Narre Warren Narre Warren South Narre Warren South Pakenham Pakenham Pakenham Pakenham Pakenham Pakenham Pakenham Upper Parkdale Tooradin Tootgarook Vermont South 3 4 4 3 6 4 3 4 3 3 3 3 4 4 3 3 3 5 4 4 5 3 4 4 3 5 3 3 4 3 2 2 2 2 3 2 1 2 1 2 1 2 2 2 2 2 2 3 2 2 2 1 2 2 2 3 1 2 2 2 2 2 2 2 16 2 2 2 8 2 2 2 3 2 1 6 2 2 2 2 5 2 2 2 1 8 1 0 5 2
5
$630,000 - $680,000 $720,000 - $745,000 $720,000 - $790,000 $1,595,000 - $1,695,000 $1,650,000 $680,000 - $740,000 $1,150,000 - $1,265,000 $500,000 - $550,000 $680,000 - $735,000 $580,000 - $630,000 $500,000 - $550,000 $1,300,000 - $1,400,000 $1,060,000 - $1,120,000 $720,000 - $790,000 $1,180,000 - $1,298,000 $1,120,000 - $1,220,000 7 7 41 183 59 15 83 42 22 42 7 35 5 65 49 41 0 27 41 0 55 0 23 7 26 91 71 27
A snapshot of last months sales
Address Leased price p/w Leased price p/m Suburb
We lease more.
Rental price p/w. High Low Number of suburbs leased in. $410 22 Average weekly rent. $780 $523 Average monthly rent. $2,258 17 Yarran Grove 23 Birch Street 1 Hartville Place 16 Bewley Way 2 Marija Crescent 19 Charles Conder Place 21 Fairground Promenade Unit 2/12-14 Harkaway Road 15 Stradbroke Close 40A Tormore Road 240 Scoresby Road 38 Athletic Circuit 1 Pamplona Way 6 Hyde Avenue 50 Elmtree Crescent 21 Ventasso Street 10 Serengeti Street 35 Mortdale Lane 8 Haines Street 70 Huon Park Drive Bayswater Bayswater Berwick Berwick Berwick Berwick Berwick Berwick Berwick Boronia Boronia Clyde Clyde North Clyde North Clyde North Clyde North Clyde North Clyde North Cranbourne East Cranbourne North 3 4 4 3 4 4 4 3 4 3 3 4 4 4 4 3 4 4 4 3 2 3 3 1 2 2 3 2 2 2 1 2 2 2 2 2 2 2 2 1 2 2 2 1 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2 2 $600 $850 $600 $450 $600 $570 $580 $550 $600 $530 $500 $560 $575 $650 $550 $500 $570 $550 $550 $530 $2,607 $3,693 $2,607 $1,955 $2,607 $2,476 $2,520 $2,389 $2,607 $2,302 $2,172 $2,433 $2,498 $2,824 $2,389 $2,172 $2,476 $2,389 $2,389 $2,302
We lease more.
A snapshot of last months sales
Address Leased price p/w Leased price p/m Suburb 14 Epsom Lane 49 Diplomat Crescent 21 Ottawa Walk 13 Forton Crescent 5/9 Humber Road 6 Homewood Close 76 Helen Road 14 Virginia Way 9 Contata Grove 34 Station Street 15 Bulga Wattle Circuit 12/12-16 Carrum Street 101 Saffron Drive Unit 7/31-45 Vimini Drive 3 Warren Close 53 Upton Crescent 34 Abeckett Road 109A A\'beckett Road 23 Ernest Crescent 10 Sneddon Drive 12 Celestine Drive 2 Finch Court 2 Harewood Street 82 Coleman Road 37 Reita Avenue Cranbourne North Cranbourne South Cranbourne West Cranbourne West Croydon North Ferntree Gully Ferntree Gully Ferntree Gully Junction Village Lang Lang Lyndhurst Malvern East Narre Warren Narre Warren Narre Warren Narre Warren Narre Warren North Narre Warren North Narre Warren South Narre Warren South Officer Pakenham Tooradin Wantirna South Wantirna South 4 3 4 3 2 3 3 3 4 6 4 2 2 3 2 3 3 3 4 3 5 3 3 5 4 2 2 2 2 1 1 1 1 2 3 2 2 2 1 1 2 2 1 2 2 2 1 2 2 2 2 1 2 1 1 1 2 2 1 6 2 1 2 2 1 4 4 1 2 4 4 2 1 2 2 $590 $500 $580 $550 $500 $490 $550 $590 $550 $800 $690 $580 $480 $490 $420 $530 $650 $520 $640 $530 $550 $480 $560 $680 $670 $2,563 $2,172 $2,520 $2,389 $2,172 $2,129 $2,389 $2,563 $2,389 $3,475 $2,997 $2,520 $2,085 $2,129 $1,825 $2,302 $2,824 $2,259 $2,780 $2,302 $2,389 $2,085 $2,433 $2,954 $2,911
Interest rates: RBA holds the cash rate at 4 35 per cent as inflation slows
he Reserve Bank of Australia (RBA) has held the cash rate at 4 35 per cent during its first meeting of the year, in line with market expectations, following last week’s consumer price index (CPI) figures which showed annual inflation had plunged to a two-year low “This is the peak for the cash rate, and I actually think everyday Australians will assume that too,” says Domain chief of research and economics Dr Nicola Powell
“What Australians will be looking forward to is when the cash rate is cut, because many mortgage holders are struggling People want that break; they want a little bit of relief, and that’s very likely to come [at] some point this year ”
Centre for Independent Studies chief economist Peter Tulip says “most people in the market are expecting rates to stay on hold for a few meetings and then fall in the next few months – and fall relatively substantially over the next year or two”
He believes rates will have declined by 3 5 per cent by next year if inflation continues to decrease, which is good news for anyone feeling the cash-rate pinch
The quarterly CPI, an indicator of inflation, rose by 0 6 per cent in the December 2023 quarter – the smallest quarterly rise since the March 2021 quarter Annual inflation fell to 4 1 per cent, still above the RBA’s 2-3 per cent target, but back at its lowest level since 2021
“While prices continued to rise for most goods and services, annual CPI inflation has fallen from a peak of 7 8 per cent in December 2022, to 4 1 per cent in December 2023,” says Australian Bureau of Statistics head of prices statistics Michelle Marquardt
Although annual inflation is falling faster than the Reserve Bank expected – it was tipped to finish the year at 4 5 per cent – Tulip says it’s too soon to celebrate the low CPI numbers
“A lot of it reflected on one-off temporary factors that are not going to keep cutting inflation,” he says “For example, government measures; their cost-ofliving relief like rental relief and the electricity rebates took about half a percentage point off the inflation growth
“I don’t think the government will repeat that and, in fact, some of those things were temporary, and they will go away We’ll see a rebound from that in the CPI over the next year ”
University of Sydney macroeconomics professor Dr Mariano Kulish says the annual inflation of 4 1 per cent is still too high, and the upcoming stage three tax cuts might further increase prices
“They should increase interest rates again,” he says “And the reason is that inflation is still very high ”
However, Powell believes the tax cuts won’t affect inflation as many economists fear
“Australians will be very mindful of how much they flex this additional cash because I think that people have really tightened their belts There’ll be some element where some people will want to save any spare cash they have to keep it for a rainy day,” she says
Mozo finance expert Rachel Wastell welcomes the hold
“It looks like the inflation figures and everything [are] heading in the right direction,” she says “We are achieving what [former RBA governor Phillip Lowe] said: ‘A narrow path to a soft landing ’
“It looks like it is the peak of the rate-hiking cycle, but what I think is interesting is watching the big banks be split on how soon the rate cuts will come ”
Many potential home buyers may now be waiting for interest rate cuts before they enter the property market, but Wastell says banks are constantly moving their rates
“There are moves happening behind closed doors that don’t make the news,” she says “It’s really important that mortgage holders keep an eye on their rate and don’t stick their head in the sand, essentially, and make sure they know what they are paying to see if they could get a better deal somewhere else
article source : www domain com au
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