According to our sample of deeds data we are observing the following (read through the attached document for more insight)
- High priced area end is maintaining its status as the leader in the cycle, with its volumes recovering earlier
- The affordable segment is still languishing at far worse rates of year-on-year decline as to August
We also examined the the current and future levels of residential affordability which appears to be back on the long term trend line. Is this the appropriate level of affordability? Has the “correction” in the market completed itself? We think probably not, and believe that in the near term there will be further improvement in the 2 measures of affordability. However, long term we think that mounting urban land scarcity will imply significantly higher real property values implying significantly worse levels of affordability, good for the property investor perhaps but also implying a dramatic change in middle class urban lifestyle. Read the attached report for more information.