RP Data-Rismark has reported strong rental growth rates and slowing dwelling value declines for August. National dwelling values declined by 0.4 per cent, seasonally adjusted, the smallest decline since April. In pure capital terms, Australian capital city dwelling values declined by 3.2 per cent over the year to August. However, if rents are accounted for, the total returns are 1.1 per cent for the year.
And National Australia Bank reports that capital city house prices fell by 2.4 per cent in the three months to September following a two per cent decline in the June quarter. Housing affordability is becoming more of a factor for buyers, with respondents to the survey saying access to credit is the biggest impediment to purchasing a property. NSW was the most pessimistic state regarding interest rates.
Ratings Agency Moody's has revealed more Australians are falling behind on their mortgages, with defaults at a ten year high. The rate of delinquencies rose from 1.36 per cent to 1.67 per between March and June this year. There's also been a rise in the number of regions where mortgage stress is rising. The number of regions performing poorly, defined by the investment services firm as having a default rate over 2.5 per cent, rose from 2 to 11. Rockingham, south of Perth has the highest delinquency rate. The two biggest declines in mortgage performance were in the mining boom states of Western Australia and Queensland.
Now to new home sales which posted a slight rise in August after two months of large falls. The latest Housing Industry Association New Home Sales Report shows the number of new homes sold edged up 1.1 per cent in August, following declines of 8 per cent in July and 8.7 per cent in June. HIA says housing conditions are very soft given the uncertain global economic outlook.
