Records for second-hand home prices going back to August of last year appear to echo the primary market: Tier-1 housing broke away from the pack late in 2014 and at last count had seen cumulative gains of over 10%. Tier-2 valuations have steadily climbed their way back into positive territory after hitting bottom in early in 2015. But used home prices in the third and fourth tiers have failed to do the same, with the latter down close to 4% at the start of October.
That dip may stem from the volume of second-hand housing listed for sale in fourth-tier cities, which appears to have risen dramatically in recent months. While used floor space on offer from all tiers saw gradual, similar gains after bottoming out in February, volumes listed in first and second-tier cities have risen only moderately compared to the sudden surge in third- and especially fourth-tier cities, which began about halfway through 2015.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
Records for second-hand home prices going back to August of last year appear to echo the primary market: Tier-1 housing broke away from the pack late in 2014 and at last count had seen cumulative gains of over 10%. Tier-2 valuations have steadily climbed their way back into positive territory after hitting bottom in early in 2015. But used home prices in the third and fourth tiers have failed to do the same, with the latter down close to 4% at the start of October.
