Growth, inflation and labour market all easing
Despite the loss of momentum in housing value growth, buyer numbers have shown a solid rise in May.
Although housing values are currently slipping or stabilising, recent history implies most home owners have some level of buffer that will help protect against negative equity. National home values remain 8.3% higher than they were a year ago, with Perth and Darwin the only capital cities where values remain lower than at the same time last year.
Despite the loss of momentum in housing value growth, buyer numbers have shown a solid rise in May. After housing market activity fell by around one third in April relative to March, sales activity bounced back by an estimated 18.5% in May. Housing market activity remains well below average, however the rise in sales through May coincides with a consistent rise in consumer sentiment and eased social distancing policies through the month.
The relationship between new listing numbers and total listings will be a key trend to watch; if total stock levels become elevated, this indicates that supply levels are outweighing demand. Currently, this does not look to be the case.
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Find out the latest news for each capital city by clicking the link and watching the videos below or read the full June 2020 Housing Market Update Transcript
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