Housing market showing resilience going into spring: CoreLogic

Speaking to Mortgage Business, CoreLogic head of research Eliza Owen has described this year’s winter selling season as an “unusual one” due to the increase in the volume of listings nationally, rising house prices, and overall market resilience amid high interest rates.

According to Ms Owen, CoreLogic has observed a 15 per cent increase in new listings added to market throughout winter to date, which would normally trend “about 8 per cent lower”.

“This time last year, we were seeing the shock of rate rises starting to settle in across the housing market,” Ms Owen said.

“If you look at the same period last year, the combined capital cities clearance rate was averaging around 55 per cent, as opposed to the average 65 per cent where it’s been the past few weeks.”

Furthermore, listing volumes fell this time last year, partly due to the usual winter slowdown and the uncertainty of rate increases.

“Not as many people were as confident in selling their property at that time,” she said.

“Compared to last year, the housing market and selling conditions are looking a little bit better.”

Going into spring, CoreLogic’s outlook for the property market remains optimistic, yet cautious.

Based on the data currently seen, Ms Owen stated it would be “reasonable to expect” a modest uplift in prices and a rise in new listings.

“There is a little bit of uncertainty there because the effects of monetary policy are starting to play out in the economy, with slower income growth and more housing income being dedicated to mortgage costs,” she said.

“There are almost two scenarios where you have price growth easing but it’s still in positive territory and with sellers adjusting their behaviour in response to that.

“Or, you have a scenario where people have no choice but to sell if they’re really struggling with employment and housing costs.”

CoreLogic’s latest auction market preview for the week ending 27 August 2023 has 2,377 homes currently scheduled to go under the hammer in what is set to be the combined capital’s busiest week since early April when 2,687 homes went up for auction.

Auction numbers rose 16.7 per cent week on week, which will mark the third consecutive weekly rise in auction numbers as activity builds in anticipation of spring.

This time last year, weaker selling conditions recorded a decrease of 15.6 per cent in auctioned homes, at 2,006.

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