CoreLogic’s daily dwelling values index, which gauges price changes across the five major capital city markets, rose another 0.22% in the week ended 20 July:
It was the 20th consecutive weekly increase in values at the 5-city aggregate level.
The weekly rise was led by the Adelaide, Perth and Brisbane, whereas Sydney and Melbourne reported slower growth:
Quarterly values have risen by 3.5% at the 5-city aggregate level, led by Sydney (+4.6%) and Brisbane (+3.9%):
As illustrated in the next chart plotting quarterly value growth, price momentum at the 5-city aggregate level has begun to slow, driven by Sydney:
This stalling in momentum is also reflected in the auction market.
Last week’s combined capital city final auction clearance rate was 66.8%.
This was the sixth consecutive week that the final clearance rate was below 70% and based on historical correlations points to slower price growth:
The data suggests that the RBA’s aggressive interest rate hikes, cost-of-living pressures and the fixed rate mortgage reset might finally be weighing on the market.
This price rebound was always unusual given it has occurred despite rising mortgage rates, falling borrowing capacity and falling sales volumes:
CoreLogic shows a nascent unseasonal lift in new listings concentrated in investor-heavy inner cities and mortgage-belt outer suburbs:
It will be interesting watching how listings respond if the RBA hikes again in August alongside the expiry of huge volumes of fixed rate mortgages over the remainder of this year.
