CoreLogic weekly house price update: Skyrocket

In the week ended 7 November 2019, the CoreLogic 5-city daily dwelling price index, which covers the five major capital city markets, surged another 0.34%:

The rise in values was driven by Sydney and Melbourne:

Quarterly dwelling values continue to rise strongly, driven by Sydney and Melbourne, where prices are rocketing:

The rebound across Sydney and Melbourne has shrunk annual losses, although Perth continues to crash:

The next chart plots month-end price growth across the major capitals (to end-October), which shows strong rebounds across Sydney and Melbourne, which have driven an increase at the 5-city level:

Finally, dwelling values have fallen by 7.1% since their most recent peak, led by Sydney (-9.9%), Melbourne (-5.5%) and Perth (-21.7%):

Thus, the bounce continues, as reflected in strong auction clearance rates across Sydney and Melbourne (albeit on soft volumes):

Unconventional Economist

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

Comments

  1. Chris Joy, I’ll be over the moon some of his investors will stop removing their investments from his fund, which is what he’s spruiking is all about I fear.

  2. reusachtigeMEMBER

    I really feel for the recent round of shut-ins who used to comment here but have expired their attendance due to shame. There will be a new round of shut-ins appear over the next 18 months. They will comment with hilarious stuff like “Look, here’s a youtube clip of empty housing estates in fckoffville – there’s gonna be a crash” etc etc. LOLOLOLOL!

    • billriskasMEMBER

      Comments like this aren’t useful. One needs to consider what this is doing to the broader economy and how this impacts future generations. Short sighted comments like this are very much a thinking process of the 70’s and 80’s and where has that gotten us today, a warming climate. If not for yourself think of the future of the next generation. You can tell me to f off but you are also telling the next generation of this country to do the same.

      • Bill, meet Reusa, he decided to take on the personality of the perma-bull a few years ago.

        All of his comments should be read with irony and sarcasm and if he ever invites you to one of “relations parties” you might want to wear a suite, as in a bio haz suite.

        • billriskasMEMBER

          Not a personal attack on Reusa, more me venting frustration at this world. Killing the young to save the old!
          All good and here on MB everyone have a great weekend. Tomorrow in Perth it will be 40c tomorrow.

          • Totally understand Bill, we all agree that Australia is eating its own young.

            Relax in the air con and have a few news free days. It will save your sanity in a world gone crazy.

  3. Interesting how when you look at the long term price chart, the only rebound in prices is Sydney and Melbourne. Everywhere else is either flat (Brisbane and Adelaide) or still declining (Perth). So it is really only a Sydney and Melbourne rebound, not a national one.

    • It must have a foreign money element then…?

      Canberra feels a bit frenetic but this month is the test – there is a phenomenal volume of auctions coming up over the next three weekends, now we will see if demand matches supply.

  4. pyjamasbeforechristMEMBER

    Sydney looks like a giant head and shoulders pattern.

    Still not seeing anything list locally, waiting for the ‘spring’ listings to see what the market can really accommodate.

    • Yes, one swallow doesn’t make a summer. A bull trap would be nice but time will tell.

      It has been suggested day one or two here on these threads that the ‘well off’ have very easy access to credit right now but the marginal guys are finding it much tougher than before. You really need a good base at the lower end to keep the higher end of the market marching higher.

  5. Are there any numbers from ABS or SQM to corroborate the CoreLogic price boom yet? I know ABS is delayed 3 months should be available for the start of the rebound soon.

  6. Goldstandard1MEMBER

    REA (realestate.com.au) released their quarterly results today. This is interesting alongside the corelogic numbers because obviously stock investors/managers look at their revenue/EBIT and this is based on ads on supply of houses for sale for REA.
    It’s damn soft. Watch their price today.
    It solidifies that selling half volumes at higher prices are increasing average prices in Melbourne and Sydney, but it’s low volumes so even REA is bleeding. Their commentary is all about “prices are rising and buyers are back so its only a matter of time blah blah…..”. What I see is everyone is hoping…….. and with a soft economy it doesn’t seem the market could support more supply. Just my investor $0.02 worth.
    They are selling hope, but the $ are not there.

  7. “Thus, the bounce continues, as reflected in strong auction clearance rates across Sydney and Melbourne (albeit on soft volumes)”

    Pretty much says it all really. ie. not sustainable

Leave a reply

You must be logged in to post a comment. Log in now