AUSTRALIAN HOME VALUES RISE AGAIN: APRIL BRINGS A 0.6% INCREASE AMIDST MARKET FLUCTUATIONS
Hello to all the property enthusiasts! April has ushered in another promising month for Australian real estate, with the CoreLogic national Home Value Index (HVI) climbing by a solid 0.6%. This consistent uptick, mirroring the gains of February and March, has boosted the national median dwelling value by approximately $4,720. That’s right, the housing market continues its upward stride into the 15th consecutive month, showcasing a robust increase of 11.1%—or around $78,000—since the lows of January last year.
As we delve into the details, it's clear that not all cities are moving at the same pace. Perth leads the pack with a notable 2.0% increase in April, closely followed by Adelaide and Brisbane with rises of 1.3% and 0.9%, respectively. Sydney’s housing values have also shown resilience, maintaining a steady 0.4% rise each month over the past quarter. Meanwhile, Melbourne's market has found some stability after a slight dip earlier in the year.
Smaller capitals like Hobart and the ACT are showing signs of recovery, with each enjoying mild yet consistent value increases over the past three months. However, Perth stands out as the market hotspot, with Tim Lawless, CoreLogic’s research director, noting that "the quarterly pace of growth in Perth is nearing the high levels seen during the pandemic's low-interest rates era."
In contrast, Brisbane is experiencing a slowdown, with growth easing to 0.9% in April—marking the first drop below the 1% threshold in a year. According to our Oracle, Mr. Tim Lawless, affordability issues may be starting to temper Brisbane's previously rapid price rises, which saw nearly a $300,000 increase since the pandemic began.
Interestingly, the lower value segments of nearly every capital city are witnessing stronger growth. This trend is also evident between different types of housing, with unit values rising faster than house values over the past three months, except in Hobart where houses outperformed units.
Looking beyond the capitals, regional markets have been showing slightly stronger quarterly growth compared to their urban counterparts over the last five months. The strongest regional performers aligned with the top capital cities, with Western Australia, South Australia, and Queensland leading the pack.
On the sales front, the market appears to have peaked last November. While the monthly sales trend tends to be seasonal, the less seasonal six-month trend has flattened since the last rate hike. Sales over the past three months are still 8.6% higher than last year and about 5.1% above the five-year average, hinting that while affordability and low sentiment may dampen sales volumes, a potential decrease in interest rates could reinvigorate the market.
As we navigate through these evolving market conditions, it’s an exciting time for buyers and sellers alike. Whether you're looking to invest, downsize, or find your dream home, understanding these trends is crucial. Stay tuned, as the dynamic world of real estate continues to evolve and present new opportunities!
Jeff Jordan
