02 Dec November Property Market Update
CoreLogic’s Hedonic Home Value Index is out for November and finally Perth sees an increase in values, recording a 0.4% increase.
Locally values have been sliding since mid-2014, dropping by 21.3% cumulatively through to the end of November. Thirteen years ago Perth was the most expensive capital city in Australia and now languishes at the bottom.
Whilst it has made it more affordable for first home buyers the trend has seen a huge reduction for many Perth home owners in their wealth over the past five and a half years.
Nationally Sydney and Melbourne continue to increase, making gains on the recent dip, with values up by 2.7% and 2.2% respectively over the month. All remaining capital cities, excluding Darwin, demonstrated a broadening in the geographic scope of this upswing with values rising over the month.
The latest report shows that November results have seen CoreLogic’s national index nudge back into positive annual growth territory for the first time since April 2018, with dwelling values 0.1% higher over the past twelve months.
Four of Australia’s capital cities moved back into positive annual growth, led by Hobart (+4.2%), Canberra (+3.0%), Melbourne (+2.2%) and Sydney (+1.6%), while the largest declines remain in Darwin (-10.9%) and Perth (-7.7%).
According to Tim Lawless who heads up CoreLogic Research, a variety of factors are supporting the strong gains in housing values. “The synergy of a 75 basis points rate cut from the Reserve Bank, a loosening in loan serviceability policy from APRA, and the removal of uncertainty around taxation reform following the federal election outcome, are central to this recovery.
“Additionally, we’re seeing advertised stock levels persistently low, creating a sense of urgency in the market as buyer demand picks up. There’s also the prospect that interest rates are likely to fall further over the coming months and an improvement in housing affordability following the recent downturn are other factors supporting a lift in values.”
Source information from CoreLogic’s Hedonic Value Index