It’s been a slow week for property data this week, however next week the latest RP Data-Rismark Home Value Index results will be released which will provide indicative results for May 2010. Last month’s Indices showed a significant slowing of the residential market with capital city house values increasing by 0.1% for the month and unit values up 0.5%. During March 2010 house values had climbed 1.3% and unit values increased by 1.4%. Most lead indicators are well and truly indicating that the market is slowing: housing finance commitments continue to fall, as does consumer sentiment, interest rates are 150 basis points higher than their recent lows, dwelling approvals fell by -14.8% during April and auction clearance rates continue to trend down. Given these results we anticipate that the rate of property value growth during May 2010 will once again be soft and this trend is likely to continue until at least the time of the spring selling season when market activity historically begins to rebound.
We also anticipate that our lead indicators such as vendor expectation error (discounting) and time on market will increase further due to the slower market conditions.
Advertised Stock on the Market
 The volume of newly advertised property listings entering the market over the last week has fallen by -6.7% (keeping in mind that last Monday was a public holiday in most parts of the country). The total volume of new listings also sat -4.7% below 12 month average levels during the last week. As a result of the easing in new listing volumes, total property listings have also fallen during last week. Total listings were down -2.3% from the previous week however, the total amount of stock available for sale remains 2.0% above the 12 month average. It is encouraging to see that as market conditions slow the total volume of listings on the market is also easing.
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