Smallacombe Real Estate Mitcham’s Post

Inflation of House Prices in York - The Detail Over nearly two decades (2006-2024), York has experienced a significant inflation in house prices, reflecting broader trends in the UK's housing market but with some unique local dynamics. This article delves into the statistics and explores what they mean for potential buyers, investors, and the community at large. House prices in York have surged dramatically from their previous levels almost two decade ago. Overall average: House prices went up from £236,406 to £399,592, a 69% increase. Detached houses have always been a premium choice for buyers seeking more space. The 71% increase underlines a strong demand for such properties. Despite the significant price hike, detached houses continue to be highly sought after, reflecting their value in offering a more spacious living environment. The 85% rise in the price of semi-detached homes, highlights the appeal to families and first-time buyers. These properties strike a balance between affordability and the benefits of having some shared walls, which can be cost-effective in terms of heating and maintenance while still offering more space than terraced houses. Terraced homes have seen the most substantial increase at 91%. This huge rise indicates a growing demand for such properties, likely due to their relatively lower prices compared to detached and semi-detached homes. Terraced houses often appeal to younger buyers and those looking to live closer to the city centre. Flats have experienced a 67% increase. While this is the smallest percentage increase among the property types, it is still substantial. Flats are often the most affordable entry point for buyers and investors, especially in urban areas where space is at a premium. The steady rise in flat prices reflects ongoing demand from young professionals, and investors seeking rental properties. The overall average increase of 69%, paints a clear picture of a robust housing market in York. The significant inflation in house prices in York reflects broader market trends but also highlights the unique appeal of the city. Whether you're looking to buy your first home, upgrade to a larger property, or invest in the rental market, understanding these trends is crucial. The data clearly shows that York remains a vibrant and desirable market, albeit a more expensive one. First-time buyers are finding it increasingly challenging to afford a property without substantial savings or assistance. However, for investors, the inflation of house prices can represent lucrative opportunities for capital appreciation & income, especially in a city with a thriving tourism industry and a steady influx of students and professionals. Moving forward, it will be important to monitor how these trends evolve, particularly in response to economic changes, housing policies, and shifts in demand. For now, York's housing market continues to be a dynamic and challenging environment for all stakeholders involved.  

An insightful lunch spent today at UDIA Victoria Residential Housing Market Update. Key insights for clients: - Overseas migration is shaping rental markets more than house values. - Melbourne's housing market downturn has started, with a 1% decline so far, and it's expected to accelerate. - Demand is shifting to lower price points, where properties are more resilient to price drops. - Since the start of Covid, Melbourne's housing values are up just 10.6%—a stark contrast to Perth's 70% and Sydney's 28.7%. - Melbourne's market weakness stems from demographic shifts, reduced investment, Covid disruptions, and state fiscal pressures. - Melbourne has the lowest housing turnover of any capital city, sitting at 4.2%. - Low interstate migration is further dampening demand. - Annual unit completions are plummeting. - Housing stock for sale is 16% above the 5-year average. - Inner and middle south-eastern suburbs have the lowest listings relative to their 5-year average. - Investor lending in Victoria is growing at just 9.4%, well below the national average of 30.2%. - Property taxes contribute 55.5% to Victoria’s state tax revenue. - Rental growth is slowing as renters hit affordability limits, leading to more shared housing arrangements. Certainly some challenges ahead but nothing this robust industry cannot overcome. Looking forward to continuing to see my clients buck the trend and thrive in this environment. Reach out if you have any queries.

📈 Insights into Australia's Housing Market: Some highlights from a recent article by Economist Kaytlin Ezzy include: -Over the past year, CoreLogic’s Home Value Index surged by 8.9%, reaching a new high -88.4% of analysed markets saw capital value growth, reflecting a strong upward trend -Despite challenges like rising rates and affordability issues, undersupply and high demand continue to drive prices -CoreLogic's analysis reveals that 94.2% of analysed markets saw annual rent increases, with nearly 40% experiencing rises of 10% or more -National rent values, after hitting a low in October at 8.1%, have risen to 8.5% in February, driven partly by accelerated capital city and regional house rents -Rental growth dynamics are shifting, with more tenants favouring house rentals now that unit rents have caught up -Perth leads in annual rental growth, with all analysed house and unit markets seeing increases, while Hobart experiences varying trends, with some areas seeing declines Theses changes appear to be a direct reflection of both the national housing shortage and rental crisis. Inaction from state and national leaders will ensure this trend continues over the coming months.

Globe editorial: Rent is falling in Toronto? The housing market shows its supply side The cost to rent a home in Toronto and Vancouver is falling. At the same time, the construction of new homes – especially rentals – is in a multiyear surge, compared with before the pandemic. This news doesn’t mean it is suddenly cheap to rent in the two most expensive cities in the country or that there’s enough new housing in Canada. But it does show a significant increase in the new supply can help ease prices. The market works. The shift in Toronto is particularly striking. The lesson is clear: new supply can make a difference in a housing market where the cost to rent and buy has shot into the stratosphere. But more supply is still needed. Governments must continue to do everything they can to speed the building of new homes, from loosening overly strict zoning rules and reducing too-high development taxes on the civic level to last year’s federal move to cut the GST from new rental housing. Opposition from existing homeowners remains a primary obstacle to overcome. That’s why zoning for greater density is important, so builders don’t have to go through long, expensive battles at city hall to get even small projects built. Two recent examples in Vancouver and Toronto illustrate the continuing problem. Five years ago in Vancouver, a small five-storey rental building in Kitsilano, near downtown, was proposed. Twenty per cent of the units would be priced well below market rates. Local homeowners expressed their extreme opposition in 2019: “It’s like dropping the ghetto in Kitsilano.” City council eventually approved the project and the builder received a low-cost loan from the province. The apartments are finally ready next month. Opponents now criticize the market-rate apartments for being too expensive. It might have been different if the project wasn’t dragged through unnecessary delays as the cost to build escalated during the pandemic. Opponents of new housing have claimed new supply wouldn’t rein in prices. They’re wrong. The decline in rent in Toronto, amid a surge of supply, shows the central role for the market in housing. https://flip.it/RNwQj5

🏠 CoreLogic’s December Housing Update: Adelaide’s Property Market: Still Going Strong! While the rest of Australia’s housing market is slowing down, Adelaide is smashing it. In the past year, property prices here have jumped up 14% – one of the biggest increases in the country. 📈 In just the last 3 months, Adelaide housing values grew another 2.8%, way above the national average of 0.5%. Compare that to Sydney and Melbourne, where prices actually dropped slightly. Why is Adelaide doing so well? 🧐 Homes here are more affordable than in other cities. There’s strong demand from buyers. There aren’t many properties for sale, which keeps prices up. On average, homes across Australia are taking 32 days to sell – longer than last year. But in Adelaide, homes are still moving fast and often selling at record-high prices. Bottom line: Adelaide’s property market is holding steady while other cities are slowing down. It’s a good place to keep an eye on for 2025! 📊

CoreLogic's recent housing report highlights a significant moderation in rental growth across Australia, yet rents continue to rise at a historically high pace. The national rental index recorded a 0.4% monthly increase and an 8.2% annual rise, reflecting the lowest rates since late last year. Sydney's unit market experienced the most substantial decline, with growth slowing from 10% to 7.1% over the past financial year. Similarly, Melbourne and Brisbane unit rents decreased notably, with Melbourne dropping from 14.9% to 7.5% and Brisbane from 6.8% to 8.5%. This moderation can be attributed to three main factors: seasonal student rental demand peaking in the first quarter, a reduction in net overseas migration after its peak in late 2023, and rents reaching an affordability ceiling. Despite this slowdown, rental affordability continues to worsen as rents maintain strong growth. This trend is likely to persist due to population demand from net overseas migration outpacing new housing construction. Additionally, it suggests continued strong CPI rental inflation, which significantly impacts the overall CPI inflation basket, accounting for around 6%. Understanding these dynamics is crucial for stakeholders in the real estate market. We invite you to share your thoughts and insights on these evolving trends!

Quebec’s Housing Market Is on the Rebound In Quebec, existing home sales and housing starts have picked back up. The resale market is still falling in most of the other provinces, but it’s worth pointing out that Quebec’s market drop was especially pronounced. Now, property sales are on the rise for nearly half the province and residential construction seems to have improved since early 2024. However, these gains aren’t equally distributed across Quebec. Even in the regions and census metropolitan areas where housing starts have improved, the results vary widely by specific location.  Most building material prices have dropped since their peak, but the cost of new buildings has not followed suit. Instead, they’re still climbing. This can be explained by rising labour costs, persistently high interest rates and, most importantly, price stickiness—prices often go up more easily than they come down. Developers and building product manufacturers have been generally unable to lower their prices, even though material prices have declined. Rental construction has started back up in some regions and locations, but there is still an ongoing housing shortage in Quebec. Rents remain high and the increase expected for 2024 is higher than last year’s. To sum up, Quebec’s resale market and new residential building construction have both started recovering. Some municipalities have also streamlined their approval process for new rental builds. But it remains to be seen if this will be enough to offset the housing crisis. https://lnkd.in/et8rU3tU

PRS housing supply at lowest level in a decade, data finds The latest figures show that there are an estimated 4.9 million privately rented homes found across England’s rental market.

Phoenix Housing market update As of August 2024, the Phoenix housing market is experiencing a mix of trends, including a decrease in the number of homes closed and a potential drop in prices: Number of homes closedIn July 2024, 2,000 fewer homes closed than in May, which is a 25% drop. This could be a sign that buyers are not willing to pay what sellers are asking for. Median sale priceIn July 2024, the median listing price for homes in Phoenix was $510,500, which is a 2.8% decrease from the previous year. However, the median sold price was $499,000, which is a 5.8% increase from the previous year. Days on the marketIn June 2024, homes in Phoenix sold after an average of 45 days on the market, compared to 37 days in 2023. Other trends in the Phoenix housing market include: Apartment completionsIn 2023, there were nearly 13,600 apartment units built, which is an increase from 2022 when 10,635 units were completed. Vacancy rateThe residential vacancy rate has decreased by more than half since 2010, dropping from 12% to approximately 5% since 2020. Tom Buron -LO 480-213-1497 tom.buron@lhfs.com