Home values in grow in June, but pace of growth slows
THERE’S some good news and not so good news on the home front for homeowners.
Prices have risen in the month of June, but the pace that prices have risen has slowed according to the latest CoreLogic Home Value Index for June.
Nationally home prices went up for a fourth month running, going up 1.1 per cent in June.
However, that is slightly down from a 1.2 per cent rise in the median home price across the country for the previous month.
A lack of homes on the market was a key factor in the latest figures, with prices rising for the fourth month in a row despite rate rises.
Of the capital cities, Sydney leads the way in price rises with homes rising 1.7 per cent for the month, bringing the median home price in that city at $1,073, 924.
Brisbane was the next in line for prices rising going up by 1.3 per cent and putting the median home price – across both houses and units – sitting at $725,397.
Melbourne remains the second most expensive city in Australia with the median home price at $725,537 after the cost of a home rose by 0.7 per cent in the month of June.
CoreLogic’s research director, Tim Lawless, said that a lack of homes on the market was a key factor in the latest figures.
“Through June, the flow of new capital city listings was nearly -10 er cent below the previous five-year average and total inventory levels are more than a quarter below average,” he said.
“Although housing values continue to go up in June, the pace of growth across most capitals eased.
“A slowdown in the pace of capital gains could be a reflection of a change in sentiment as interest rate expectations revise higher.
“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.”
Meanwhile in regional Australia prices also continued to rise for the fourth month in a row, jumping by 0.5 per cent to see the median house price in regional Australia now sitting at $586,645.
But the amount of growth, as in the capital cities, was down.
Mr Lawless said that the return to the cities, post-pandemic, could be a factor in these numbers.
“After regional population growth boomed through the worst of the pandemic, internal migration trends have normalised over the past year, resulting in less housing demand across regional markets,” he said.