CoreLogic released a monthly housing update for November 2021 that highlights the latest trends and insights into the Australian housing market, which are summarised below.
Australia's combined value of residential real estate reached a shocking $9.3 trillion towards the end of October. The national home values increased by 21.6% during the past 12 months leading up to October, followed by a 24.3% increase in the combined regional markets and a 20.8% increase in the combined capitals.
The sales volume soared by 42.4% during the past 12 months leading up to October, where the transaction volumes in October were estimated to be 54.8% higher than the 5-year average of 60,948 transactions. The Australian properties were sold approximately in 29 days during the past 3 months leading up to October in comparison to 39 days within the same period in 2020.
Furthermore, the combined capital cities clearance rate reached its greatest at 83.2% in early October and is gradually slowing down. Interestingly, the volumes of auctions heightened with the ease of COVID restrictions.
Over the last 12 months leading up to October, rent prices shoot up by 9.2% indicating the strongest appreciation since February 2008. Most importantly, the RBA informed that the cash rate may not increase until 2024 however there is a possibility of an increase in the target before the cash rate. The latest data and forecasts did not authorise the increase of cash rate in 2022.
Download the full report here.