RESIDENTIAL PROPERTY
OVER June, national home values experienced a fourth month of recovery, albeit at a slow rate of growth than last month...
According to CoreLogic’s national Home Value Index (HVI), Australian home values were up 1.1% over June, after May’s 1.2% increase...
This comes just after PropTrack’s Home Price Index, found national home prices were up 0.31% month-on-month for June, with the combined capital cities up 0.41%...
Since hitting a low in February, the national HVI has increased by 3.4%, while the market is still sitting 6.0% below the peak recorded in April 2022...
CoreLogic’s research director, Tim Lawless, noted that a continued lack of supply is still the major factor placing upwards pressure on housing values...
“Through June, the flow of new capital city listings was nearly -10% below the previous five-year average and total inventory levels are more than a quarter below average,” said Lawless...
“Simultaneously, our June quarter estimate of capital city sales has increased to be 2.1% above the previous five-year average.”
Over June, each capital city saw an increase in dwelling value, excluding Hobart which saw a minor 0.3% decline for the month but a 0.1% gain for the quarter...
Sydney is still leading the country’s recovery for the cycle, recording a 1.7% rise in June for a cumulative increase of 6.7% since the city’s January low of 6.7% and 4.9% for the quarter...
Adelaide and Perth, which so far have avoided the downturn, both saw a 0.9% rise in value for the month, for a respective increase of 2.1% and 2.8% for the quarter...
While Brisbane was up 1.3% for the month and 3.0% for the quarter, Melbourne recorded a 0.7% increase for the month and...
“A slowdown in the pace of capital gains could be a reflection of a change in sentiment as interest rate expectations revise higher,” added Lawless...
“Higher interest rates and lower sentiment will likely weigh on the number of active home buyers, helping to rebalance the disconnect between demand and supply.”...
While recording a slower rate of growth than the capitals, the combined regionals index also recorded a fourth consecutive month of growth...
“After regional population growth boomed through the worst of the pandemic, internal migration trends have normalised over the...
“Additionally, housing demand from overseas migration is skewed towards the capital cities rather than the regions.”...
Regional Victoria was the only regional market to see a quarterly decline in housing value trends, down -0.4% in June to be...
Most the SA4 sub-regions of regional Victoria saw declines in June, with Geelong home values down 0.7%, Ballarat values down...
“The weaker conditions across regional parts of the state may be related to a normalisation in migration flows as more regional residents move to...