03 Feb Property market update
Growth has been recorded in all capital cities in January according to the latest data from CoreLogic. With strong growth in Melbourne of 1.2% and Sydney of 1.1% leading to annual rises of 7.9% (Sydney) and 8.2% (Melbourne).
Over here in WA there was a little relief for Perth home owners, the latest results delivering some encouraging news. Housing values appear to be slowly recovering from a slump lasting five-and-a-half years. The area’s dwelling values edged 0.1% higher over the month. Perth dwelling values posted their first rise over a rolling quarter (+0.4%) since a brief period of growth in May 2018.
The CoreLogic Hedonic Value Index showed an overall capital cities growth of 0.9% for January and an annual increase of 5.2%. Regionally the strongest conditions were in Tasmania with values up 1.3% over the month followed by an increase in regioanl Western Australia of 0.9%.
CoreLogic’s head of research Tim Lawless said, “Seasonal effects provide some explanation for the lowdown. The CoreLogic seasonally adjusted hedonic index implies the time of year shaves about 1 basis point of growth from the December reading and 2 basis points from the January reading.
“Factoring in the seasonal affect, the latest results indicate a reduction in the speed of growth across most markets, especially for Sydney and Melbourne where affordability constraints are once again becoming more pressing. As advertised stock levels rise over the early part of the year, we could see some further dampening of growth rates.”
The increase nationally has shown an overall rise of 6.7% since a low in June last year, however CoreLogic’s national index remains 2.2% below the October 2017 high.
Tim Lawless said, “With housing values rising at the quarterly pace of 3.7%, we are likely to see a nominal recovery in the national home value measure within the next two-to-three months.”
The report mentions that the Perth will take a much longer time to see values recover. Although the market seems to be moving into a recovery, housing values remain 21.3% below their 2014 peak.
Source: CoreLogic Hedonic Value Index January 2020