RP Data: House prices down -1.2% in May

ScreenHunter_13 May. 01 13.26

By Leith van Onselen

RP Data has just released its daily index results for 31 May, which has enabled me to calculate the dwelling values results at the 5-city level, which covers the five major capital city markets.

According to RP Data, dwelling values nationally fell by -1.19% at the 5-city level, with losses recorded in all major capitals except Perth (see next chart).

ScreenHunter_58 May. 31 12.03

Since the start of the year, values have risen by 0.91% at the 5-city level, with all major markets except for Melbourne experiencing increases (see next chart).

ScreenHunter_59 May. 31 12.04

Over the past 12 months, values have risen by 2.85% at the 5-city level, with all major markets except for Adelaide experiencing increases (see next chart).

ScreenHunter_60 May. 31 12.07

Values are down -4.8% since peak at the 5-city level, with all major capitals in negative territory (see next chart).

ScreenHunter_61 May. 31 12.09

However, major capital home values have now gained 2.9% since bottoming in May 2012, with all capitals rebounding (see next chart).

ScreenHunter_62 May. 31 12.10

On Monday, RP Data will release its full report, which includes price results for the other major capitals, namely Hobart, Canberra and Darwin.

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Comments

    • Melbourne suburbs where it’s cheaper to buy than rent
      Docklands (House)
      Carlton (Unit)
      Abbotsford (Unit)
      Albion (Unit)
      Melbourne CBD (House)

      Yep, heaps of 3 bedroom houses with a nice backyard in the CBD to choose from

      • thomickersMEMBER

        i think there was an article just last week indicating that there were only 7 houses in all Melbourne CBD.

        As for Carlton & units, 70% of them are for uni students.

      • Yeah I saw that article about 7 houses and you can buy one of them for a measly $3,000,000! Cheaper than renting…

    • wasabinatorMEMBER

      Agreed, it’s quite ridiculous.

      Wow, let’s all go rush out and pay 30 years worth of rent in advance for shelter at the very first sign of a dip in price. Shrewd investment indeed. Besides, buying such a unit in St Leonards means paying over the odds competing against dozens of people who can’t spell their name in English and have brought large brown paper bags full of funny money with them.

      And again it’s all based on *short term* interest rates!

    • The Patrician

      It makes commercial sense to promote excessive mortgage debt on grossly overpriced houses when you own realestate.com

      • thomickersMEMBER

        I would disagree. that company just needs more listings and it certain has achieved this over the last 2-3 years. In fact a vibrant housing market (low vacancy rate/ low stock on market) would be bad for them.

        but it would make a lot of commercial sense if you happen to be APM. that company always needs to be positive about excess debt 😛

  1. Perth keeps bucking the trend.

    Available stock is just too low at the moment I think and until we see a decent rise in unemployment and a little forced selling I don’t think much will change.

    Engineering friend bought a place this week and said the home open was packed. They offered $21k over asking.

    I continue to be staggered by the almost total ignorance of locals who seem oblivious to what is on the horizon. Apart from those who have already been directly affected, of course.

    • Weird… when i was looking for a rental property in Perth January this year, there was only one other guy who was inspecting the house that we were interested in…

      • Same here, I’ve been to a few home opens for rentals in the Fremantle area and at the most have seen 2 other people looking… Very different when I first moved here 2 years ago and there was 20 people waiting to come in!

        My partner and I are looking to rent something bigger (and nicer) with his sister… I’ve been monitoring rentals over the past few weeks and have noticed huge price drops ($50-$60 per week down). It’s great! Especially in the new developements in South and North Freo (luxury apartments) – there’s a rising number of apartments for rent and they are all dropping their asking price. This is obviously in stark contradiction to people who say they will just charge more if negative gearing was abolished! Equilibrium has already been reached…

    • Forrest GumpMEMBER

      The mining boom is now over. New mining investment is now dried up. All the Perth engineering services companies are shedding people like crazy. Only the balance of the construction remains to be completed then its all over red rover for the construction of mines in WA. The pace is now picking up with BHP, FMG & RIO now demobing contractors that have completed the final upgrades at each of the sites.

      What Perth-ites fail to remember is the boom is NOT a mining boom…its a CONSTRUCTION boom, of which is fueling the housing market. It takes 5000 people to design and build a new or upgrade a mine site. But once the construction is over, the jobs are gone. It only takes one person to drive the train on the rail line that took 300 people to build!

      We have less than 2 years left in this construction phase. Over the next 2 years around 50,000 jobs will go. So will the desire to live in WA which will impact the housing market.

      The clock is ticking people….

      • Mining BoganMEMBER

        Those with the greatest sense of self-entitlement in the country, the FIFO mining bogan, is about to become what it watches and whinges about…the ACA/Today Tonight loser.

        I’ve been waiting for this. 😉

    • We have all been saying this/reading this for years now the Mining Cliff has passed we may well see some cold chill moments from speculators.

      2013 has been interesting so far.

      What will 2014 bring I say dollar back between .85 to .80 against the USD.

      TM.

  2. UE any thoughts on the reliablity and accuracy of this daily index?

    Does the regular reporting of the daily index by MB infer that you guys think this is an accurate measure of the market?

  3. reusachtigeMEMBER

    If anyone actually comes across an msm article that headlines this and also critically examines what it means considering the emergency low interest rates we now have, then please post the links here.
    .
    Waiting …
    .
    Still waiting …

  4. Not saying the market has bottomed but with recent declines in April and May some areas of Melbourne are almost looking reasonable.

    Maybe Buy Now?

    • “almost looking reasonable”

      Can you define ‘reasonable?’

      My definition would be… back in line with long term median for that particular suburb.

  5. FIRB treason and boomers using SMSF on the decline? Given the size of China you’d think it would cause another boom, maybe.

    1.2% down, 58.8% to go imo.

  6. McPaddyMEMBER

    So your average property speculator who has entered the market since around May 2010 has made a capital loss, not counting transaction fees?

  7. SoulNigga Chips

    Since the 9th of May house prices in Melbourne are down 3.5%! That’s only 3 weeks!

    That’s an annualised rate of 60% falls over the next 12months!!!

    Felt like it was time to use spruiker logic.

    • russellsmith55

      Wooo Melbourne! Buy now, or be forced to buy later at a much cheaper price!

  8. If it is a general rule to compare interest payment with rent payment for purpose of buying or renting, isn’t it reasonable to add to the mortgage interest payments also insurance, annual cost for home repairs and eventually body corporate rates as today the apartments look more popular? Then we can compare the cost of renting vs cost of buying. Isn’t that right?

    • McPaddyMEMBER

      Don’t forget to amortise the transaction costs, which can be pretty substantial, even when annualised, depending on your lifestyle. To take my (rather extreme) case, I’ve moved 5 times since 2000 (all voluntary). But I think the average length of tenure in one residence is around 7-10 years, right? And the cost is all upfront, so more expensive in terms of time-value.

  9. I haven’t seen any houses at Docklands but surely there must be some. If there are not, then from the logical point of view any statement about the empty set is true therefore houses at Docklands are the most affordable in Australia (and the Southern Hemisphere) and much cheaper to buy than rent 🙂

    • thomickersMEMBER

      lol. i know of some australian deserts where it could possibly be cheaper to buy than rent

    • Ι think there are some townhouses on top of a commercial building in the harbour. They were shockingly expensive 5 years ago when I looked at them, not sure now.