Strong February activity in the real estate and mortgage industries

ABS housing finance statistics are likely to show strong results for February, judging by CoreLogic RP Data's index of valuation events.

Activity across the mortgage valuation platforms of CoreLogic RP Data reached a new high last week, with volumes increasing by 31 per cent during February 2015 compared with January.
 
This magnitude of percentage increase may be typical for this time of year, but it is worth noting that the increase occurred off a higher base, with January 2015 volumes being around nine per cent higher than January 2014 volumes - and January 2014 volumes in turn being 28 per cent higher than January 2013 volumes.
 
The increase was driven by activity across the Sydney market, where a 42 per cent increase in volumes over January 2015 was followed by February volumes 15 per cent above the corresponding period 12 months ago.  
 
The most active segment of the Sydney market was the A$500,000 to $750,000 price bracket, which recorded a third of the Sydney volume, reflecting the fact that the median price of a house in Sydney is now $769,000 and a unit $615,000.
 
Melbourne activity also materially increased, up a more modest 29 per cent across February.  As in Sydney, this seasonal increase was off a higher base, with January 2015 platform volumes 13 per cent higher than the same period a year ago.
 
With the Reserve Bank electing last week to maintain the cash rate at 2.25 per cent (but formally communicating a firm bias towards further easing of monetary policy), increased focus is now placed on understanding the impact of this accommodative monetary policy on the strong Sydney property market and, to a lesser degree, the Melbourne market.
 
CoreLogic RP Data Home Value Index results last week revealed a 1.3 per cent increase in Sydney home values over February, with Melbourne home values relatively unchanged at 0.1 per cent. 
 
To provide some context, Sydney home values have increased by 13.7 per cent in the 12 months to February and Melbourne values by 7.3 per cent for the same period.
 
Finally, CoreLogic RP Data's real estate platforms are also experiencing record levels of activity by real estate agents preparing new stock for listing, suggesting many vendors are looking to test the market and take advantage of the strong market conditions.