Housing values accelerate in August
RECENT CoreLogic research shows that national dwelling values have increased by 0.8 per cent over the month.
The lift in housing values through August was substantial, however, the recent growth is a continuation of the trend seen throughout the year whereby value falls were consistently losing momentum, and have now started to rise.
Commenting on the August results, CoreLogic research director Tim Lawless said that the significant lift in values over the month aligns with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low.
“It’s likely that buyer demand and confidence is responding to the positive effect of a stable federal government, as well lower interest rates, tax cuts and a subtle easing in credit policy.” Housing values increased across five of the eight capitals over the month, but slipped lower in Adelaide, Perth and Darwin.
Across the rest-of-state regions, only Vic, Tas and NT recorded monthly increases.
Mr Lawless noted it was the third successive month of capital gain in Sydney, Melbourne and Hobart and the second successive month of increases in Brisbane.
“While the ‘recovery trend’ is still early, it does appear that growth trends are gathering some pace, particularly in the largest capital cities.”
The rolling quarter saw national values lift by 0.6 per cent; the first rise in values over a three month period since November 2017.
Combined capital city dwelling values have increased by 1.0 per cent over the past three months while combined regional market values have continued to trend lower, down 0.6 per cent.
National dwelling values reached their largest annual falls in May 2019 at 7.3 per cent, by the end of August 2019 the annual decline in dwelling values had lifted to 5.2 per cent. Combined capital city dwelling values are 5.9 per cent lower over the past year while combined regional market values are 2.9 per cent lower.
Despite the recent increases in dwelling values, regional Tasmania is the only major region where values are currently at an historic high.
Sydney dwelling values remain more than 10 per cent below their previous peak (down 13.3 per cent) and Melbourne values are almost 10 per cent lower than the peak.
Mr Lawless said that although the recovery trend in these two cities continues to strengthen, the expectation is that it will take some time for values to return back to their previous highs.