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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUSTRALIA DATA
CoreLogic house prices fell 1.1% m/m in January after 1.2% in December, the ninth consecutive fall. This brought the annual rate to -8.8% from -7.1% and house prices now stand 9.7% below their April 2022 peak. The correction to date has not yet unwound half of the Covid bounce in house prices of 25.1% but so far it is one of the largest corrections globally. Higher rates are weighing on the housing market but currently the adjustment is orderly and is likely to be an area the RBA is monitoring rather than wanting to pause over.
- Prices in Sydney fell 1.2% m/m and -13.8% y/y (December -1.4%/-12.1%) and Melbourne -1.1% m/m and -9.3% y/y (-1.2%/-8.1%).
- House prices nationally are still 8.1% above trend after peaking at 21.9%. While housing valuation, ratio of house price to rents, is improving as well, it remains overvalued by around 6.5%.
- Sales remain weak with new home sales falling 4.5% m/m and -41.6% y/y in December. A turn in this would be required for prices to turn up again.
- NZ CoreLogic house prices fell 0.3% m/m and -7.2% y/y in January after -0.2% and -5% last month, more moderate than Australia’s correction despite more tightening.
Australia CoreLogic house prices versus trend
Source: MNI - Market News/Refinitiv/CoreLogic
Australia new home sales y/y% 3mma
Source: MNI - Market News/Refinitiv
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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