March Property News
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What are the current trends impacting the Australian property market?
We connect you to the best real estate information across Australia, The Real Estate Podcast. And welcome to another episode of The Real Estate Podcast, available on iHeartRadio, also on Google and Apple Podcasts, or wherever you get your podcast from. Well, it's a Saturday morning. Let's have a look at some real estate news and realestate.com.au. They're reporting that the supply disruptions And the Russian invasion of Ukraine are pushing up prices and inflation. And the Reserve Bank of Australia Governor Philip Lowe is advising borrowers to prepare for a possible interest rate rise this year as data shows home buyer demand continues to ease. He said it would be prudent to plan for an increase and that it's plausible that interest rates will increase this year.
However, he went on to say it's not guaranteed, which is a little bit like having a bet both ways, isn't it? Many leading economists have brought forward their predictions for the timing of the RBA's first rate hike, with the Commonwealth Bank of Australia and AMP Capital now expecting a move in June. Asked about the chance of a June rate increase, Mr Lowe said that he did not want to specify a month. He says presumably there's a certain configuration of events that could lead to an earlier increase, but it's also plausible that this gets pushed out again further. And went on to say that there are plausible scenarios still where rate rises don't occur for a long period of time, well into next year or even further.
And it's important to keep this in mind, the last time the RBA raised the cash rate was in November 2010, with Mr Lowe noting that many borrowers had no experience with higher rates. He said for many borrowers that's going to come as quite an unwelcome development, but that depositors would welcome higher rates on their savings. And CoreLogic is reporting slower buyer demand, tighter lending conditions and affordability constraints contributed to an easing in Australia's national high volume growth rate in February. The lowest rate of growth since October 2020 coincided with a new record high for residential markets combined value, which hit $9.8 trillion at the end of February. And that's up $9.7 trillion in the previous month.
Australia's household wealth is underpinned by residential real estate now worth almost $3 trillion more than superannuation, the Australian listed stocks and commercial real estate combined. So here are 10 key market metrics that are making headlines in March. Number one is dwelling values in Australia are 20.6% higher over the past 12 months. Number two is the highest annual growth rate in dwelling values among the regional and capital city dwelling markets. was across Brisbane at 29.7% and the lowest rate of appreciation in values was across regional Northern Territory at 7.1%. Number three, sales volumes rose 37.7% in the first 12 months to February. Number four, properties are taking slightly longer to sell at national level as new listings volumes rise.
In the three months to February, the median number of days on market was recorded at 30 days, and that's up from a recent low of 21 days in the three months to December. Number five, discounting levels are around record lows reflecting strong selling conditions. However, vendor discounting has deepened slightly across the combined capital city market in recent months to minus 3.2%. Number six, more advertised stock is being added to the market than usual. At the national level, the four weeks to March 6th saw new listings trend 4.8% higher than the equivalent period of 2021. Number seven, clearance rates averaged 72.4% in the four weeks to February 27, which is down from 78.8% in the equivalent period of 2021.
Number eight, in the year to February, Australian rent values increased 8.7%, which was down from a recent high of 9.4% in the 12 months to November. Number nine, detached house approvals fell minus 17.3% through January. That's following a surge in approvals between August 2020 and December 2021.
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