The Australian Bureau of Statistics released their Consumer Price Index (CPI) data for the June 2011 quarter this week. Headline CPI was up 3.6% over the year and by 0.9% over the quarter which was much greater than most economists’ were anticipating. The Reserve Bank’s (RBA) preferred measures of core inflation came in at 2.7% for the year and 0.9% over the quarter. With headline inflation now outside of the RBA’s medium-term target range of 2% to 3% and core inflation at the upper end of the band, it seems as if the next move in interest rates is most likely to be upwards despite the low levels of consumer confidence and lacklustre performance across the retail and housing sectors.

The RP Data-Rismark Home Value Index results for June 2011

The results showed that home values across the combined capital cities fell by -0.2% over the month following a -0.3% fall during May. Over the quarter, home values were -0.9% lower and on an annual basis values have fallen by -2.0%. The results indicate that in recent months the rate of decline in capital city home values has continued to slow. Across individual cities, Sydney was the best performer over the past 12 months with values up 0.5% while Brisbane was the weakest marker with values falling by -6.3%.

Advertised Stock on the Market

Latest Listings: The number of new properties advertised for sale nationally fell by -6.0% over the four weeks to 24 July 2011 compared to the four weeks to 17 July. In comparison to the same time last year, new listings are currently -17.7% lower across the nation. Within the combined capital cities, new listings have fallen by -4.9% over the week and they are -18.5% lower than at the same time last year. The total number of properties advertised for sale has fallen by -0.2% nationally over the last week and by -0.3% across the combined capital cities. Total listings are currently 26.3% higher than they were at the same time last year nationally and 23.1% higher across the combined capital cities.

Latest National Auction Clearance Rates

Auction clearance rates: The weighted average capital city auction clearance rate for the week ending 24 July 2011 was 48.9%, up from 47.2% the previous week. The volume of capital city auctions also increased from 981 the previous week to 1,123 last week. Melbourne’s auction clearance rate increased from 50.4% the previous week to 53.0% last week with volumes increasing from 452 auctions to 523 auctions. Sydney’s auction clearance rate also increased, up to 57.1% last week from 55.2% the previous week. The number of auctions taking place also increased, with 367 last week up from 301 the previous week.

Number of Properties Advertised for Rent

Rental listings: The number of new rental advertisements fell by -5.0% nationally over the four weeks to 24 July 2011 compared to the four weeks to July 17. New rental listings are now -22.5% lower than at the same time last year. New capital city listings fell by -4.9% last week and are -23.2% lower than at the same time last year. Total rental listings have fallen by -2.0% nationally and by -1.8% across the combined capital cities. Total rental listings are now -4.4% lower than at the same time last year nationally and -6.1% lower across the combined capital cities.  

                                                                                               Source: RPDATA