Some good news for retirement living operators – but also an alarm bell.
CoreLogic’s latest research shows a striking turn-round in consumer confidence and new listings with six of the eight capital cities recording a small rise in home values over the month.
However, Melbourne and Sydney – which holds 40% of Australia’s stock and 55% of its housing value – have recorded their fifth consecutive month of decline.
Overall, the national dwelling value fell 0.1% in September – the smallest decline since falls began in May this year.
CoreLogic’s head of research, Tim Lawless, is optimistic though that the lifting of lockdown restrictions in October – including bans on private home inspections – will see the market lift.
Regional areas have also come out on top compared to the cities – falling only 0.8% since March while capital cities have seen price declines of 2.6%.
Mr Lawless puts this on these markets traditionally being more affordable – and having a lower base to fall from – and growing demand for major regional centres where people can commute back to cities if required.
However, the figures also show that low advertised stock is driving some of the demand, with new listings 22% below a year ago and 25% below the five-year average.
This suggests people may be holding onto the family home in the hope of a better price down the track – which in turn impacts on operators waiting for new residents to sell up and move in.
