Despite the fact that home values are rising across Australia, the number of property transactions is actually falling for a variety of reasons.
However, there are hot spots that are bucking the trend. Here are the best and worst performing suburbs in Australia.
The first table shows the council regions across the country which, over the 12 months to March 2016, have seen the biggest increases in sales relative to their five-year average.
What is immediately noticeable is that not one is located in a capital city.
In fact, most of them would be best described as small regional areas linked to agriculture.
Interestingly, the rise in sales activity contrasts with the strong population trend of people moving away from country areas to the cities.
But while certain regional regions have seen a large rise in the number of sales, others have been hit hard by the mining downturn. The second table shows the 20 regions nationally that have seen the biggest decline in sales over the past year.
All are closely linked to the mining and resources sector. With the significant downturn in mining investment and subsequently less demand for workers, housing demand has dried up, resulting in far less turnover of stock. The substantial decline in transactions has resulted in a sharp decline in values, as those properties that need to be sold transact at a significant discount.
There are a number of factors that affect sales, such as high transaction costs (this includes stamp duty on new purchases and agency fees on sales).
Another influence is the fact that the family home is excluded from the pension assets test. So for retirees who move onto the pension there is little incentive to downsize.
Most transactions take place in the capital city housing markets, as this is where most people live.
We expect sales volumes to continue to trend lower over the coming year, with slightly improved sales activity in many of the battered mining and resources regions.
We may also see increased demand in lifestyle regions, particularly when we consider the fact that property owners in Sydney and Melbourne have enjoyed a big boost in equity and that values in many lifestyle markets still sit at a discount to their pre-GFC peaks.