Capital city dwelling values continued to show a strong headline rate of growth over the September quarter, with the CoreLogic Hedonic Home Value Index rising 2.9% over the past three months. The combined capital city index, which is heavily weighted towards the Sydney and Melbourne markets, recorded a 1.0% month-on-month gain, taking capital city dwelling values 41.3% higher since the growth cycle commenced in June 2012.
Adelaide continues to show steady growth with 2.1% over the month of September and 2.6% over the quarter. These values are likely being spurred by the low number of new listings hitting the market and reasonably high demand for that stock.
Discount rates in Adelaide continue to increase meaning that many owners are being much more flexible on their prices in order to achieve a sale.
In Adelaide, the change in unit values over the past year has been less than half that of houses. Adelaide is expected to see a substantial increases in unit stock is expected over the coming years, it is reasonable to anticipate that the gap between the annual change in house and unit value will persist and potentially grow larger.
Since 2008 in Brisbane, Adelaide, Perth and Canberra, the cumulative growth in unit values has been less than half that of houses over the period.
We saw a significant drop in the number of Auctions this last week due to the long weekend and the AFL Grand Final (go Doggies!). 853 properties were taken to auction last week, with a preliminary clearance rate of 77.5%, compared to the same time last year when there were 865 auctions were held, with a clearance rate of 68.2%. In comparison, over the week before last a total of 2,480 auctions were held with a clearance rate of 75.4 %.
Here in Adelaide it was quiet with only 42 auctions being held at a clearance rate of 74.2%. This was significantly lower than last week where we saw 131 auctions but was pretty similar to the same period last year where we say 33 auctions. Still a positive clearance rate for the market in general.