04 Mar Property market update
House prices continue to rebound nationally.
Five of Australia’s eight capital cities reached record highs in February. Data from Corelogic February 2020 Home Value Index showed an increase nationally of 1.1%, with all capital cities recording a gain with the exception of Darwin which declined by 1.4%.
The pace of growth increased with Sydney gaining 1.7% and Melbourne 1.2% translating into annual increase of almost 11% for tyhe two biggest cities.
Locally, Perth registered a gain of 0.3% in February, seeing house values improve for the quarter by 0.4% and reducing the annual value by -4.0%.
Record low rates and the lessening of credit restrictions have stimulated buyer demand and assisted in a broader recovery nationally with the exception of Darwin.
The rate of increase meant February is only 1.2% below its 2017 peak. Tim Lawless, CoreLogic’s head of research explained, “At the current run rate of growth, the national index is likely to reach a new nominal high over the next two months.”
With February’s increases it means Melbourne has joined with Brisbane, Canberra, Hobart and Adelaide where housing values are also tracking at record highs.
Sydney’s housing values remain 3.7% below the 2017 peak; based on the rate of growth over the past three months, Sydney housing values could stage a nominal recovery by the end of May this year.
Locally it appears that the Perth housing market has started to recover and the with dwelling values increasing by 0.3% in February, marking four consecutive months where dwelling values have avoided a fall; a trend not seen since the market peaked in mid-2014. Tim Lawless said, “Although Perth values are now trending higher, the recovery period is likely to be a long one, with Perth housing values remaining 21.0% below their peak.”
Regional markets are generally lagging behind the capital cities, with housing values only 1.4% higher over the past twelve months compared with a 7.3% rise across the combined capital city markets. Tim Lawless said, “The diversity across regional Australia is extreme, with drought affected areas impacting the regional index. Meanwhile, the regional centres adjacent to the largest capitals, as well as coastal lifestyle markets, show a stronger performance.
Source of Data taken from The Corelogic February 2020 Home Value Index Results