Daily Buzz: Tuesday, 5 December
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Is a ‘Double dip’ on the horizon for property prices? Unveiling the New Building Commission in NSW, and auction numbers stay steady for the start of summer.
Welcome to Property Buzz! I’m Juliet Helmke. Today is Tuesday, 05 December.
– While a dwelling supply shortfall has had the upper hand this year, high interest rates and their lagged impact are now coming to the forefront, according AMP chief economist Shane Oliver.
– National average home price growth has slowed to 0.6 per cent in November following a 0.8 per cent rise in October, and a peak of 1.2 per cent in May, according to CoreLogic data.
– While the national 8.3 per cent rise from a low in January has been fuelled by supply shortages from surging immigration levels and less interest rate sensitive buyers seeking to take advantage of last year’s price falls, Mr Oliver noted that housing prices are showing clear signs of slowing again as the prospect of future rate hikes shakes up the market, meaning home prices could be in for a second dip.
And the Building Commission NSW, the state’s first dedicated building regulator, has been established in the state, handing over the responsibility of monitoring construction quality from NSW Fair Trading.
– The regulator, led by Commissioner David Chandler, is funded by a $24 million “down payment” included in the last NSW state budget, and will oversee all regulation, licensing, and sector oversight.
– The establishment of the regulator was a key election promise by NSW Premier Chris Minns to address increasing defects in new builds and prevent disasters like the Mascot Towers.
And CoreLogic has reported that 2,999 homes went to auction in the week ending December 3 2023, a 1.7 per cent increase from the previous week and the second busiest auction week of the year.
– The national preliminary clearance rate was 67 per cent, a slight increase from the previous week but still one of the lowest results in 2023.
– Sydney recorded a 68 per cent preliminary clearance rate, its lowest since mid-February, while Melbourne reported a rate of 64 per cent. Adelaide and Brisbane had strong rates in the high 70s and Canberra reported a low of 55 per cent.
That’s Property Buzz for today.
See you again tomorrow, 06 December, for your daily dose of Property Buzz.”
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