The extension of government stimulus initiatives announced in the May 2009 budget has helped boost consumer confidence and continue the recent revitalisation of the Australian and Victorian housing markets. This boost to the Victorian housing market has seen the June 2009 REIV auction clearance rate jump to 86 per cent, a level not seen since the boom period in July 2007.
Housing Affordability in Victoria has continued to improve in the 2009 March quarter. The proportion of income required to meet monthly loan repayments has decreased from 32.1 per cent in the December quarter 2008 to 27.7 per cent in the March quarter 2009. The average monthly home loan repayment has decreased by 12.4 per cent for the quarter while the median weekly family income has increased 1.6 per cent.
The number of total dwelling units approved in Victoria decreased by 8.9 per cent in seasonally adjusted terms for the month of May 2009. The value of total dwellings approved in Victoria decreased by 6.6 per cent to $1.28 billion dollars. In trend terms, the number of total units approved in Victoria increased by 0.3 per cent for the month while the value of total dwelling units approved decreased by 1.1 per cent for the month.
In Victoria, the number of dwellings financed by first home buyers increased by 16.2 per cent in May 2009, as uncertainty about a possible extenstion of the boost saw many buyers trying to get in the market before the 30 June 2009 deadline. Dwellings financed by non-first home buyers increased by 12.3 during the month. The average loan size for first home buyers decreased by 1.0 per cent for the month, while the average loan size for non-first home buyers increased by 2.8 per cent. The total number of loans increased by 13.5 per cent for the month, while the total value of the loans increased by 15.4 per cent.
The Metropolitan Melbourne rental market remained unchanged in May 2009 with a vacancy rate of 1.3 per cent. The inner and middle Melbourne vacancy rates both eased to 1.4 per cent from 1.3 per cent, while the outer Melbourne vacancy rate tightened to 0.9 per cent.
Tags: Hodges Real Estate, Melbourne Real Estate, Economic Forecast
