- CoreLogic’s latest Home Value Index has the total property market now worth A$8.1 trillion
- Home values are now 7.6% above the last peak of October 2017
- WA and NT are the only states and territories not at record highs (yet)
The housing market has pushed to a new record level, 7.6% above the previous peak back in October 2017.
Western Australia and the Northern Territory are the only areas where house prices are not at record levels. However, that may not last long, as the resources-rich state of WA has the lowest unemployment in the land and is now only $40,000 off its previous record median house price.
Low interest rates and a recovering economy continue to push house prices higher, across the country. There are also signs that, as rental prices rise and interest rates stay low, the numbers are beginning to work for property investors.
Property investor financing was up 17.7% in March, compared to January, with investors making up more than a quarter of the market. Meanwhile, first home buyers are retreating, with a decline of 4.8% in borrowing post the completion of JobKeeper and reduction in various first homeowner grants and incentives.
“The uplift in dwelling values over the last several months now has been very broad based across Australia. The vast majority of sub-markets analysed saw a lift in housing values in the 12 months to April.
“With economic conditions improving, dwelling values at a new record high, and red-hot growth in sales volumes, conversations with clients and industry stakeholders are turning to how long this can last.
“At this stage, it seems most likely that the extraordinary growth rates seen through the start of the year are not sustainable, and will gradually trend down due to affordability constraints. Tighter lending conditions also seem likely to put downward pressure on housing demand.”
Eliza Owens, CoreLogic
Australia as a whole
[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]
Around the country
New South Wales – a ‘top performing’ housing market – Sydney dwelling values have risen 9.3% this year alone, and regional NSW dwelling values are up 9.0%. Both are at record highs.
Victoria – has bounced back strongly amid eased restrictions since the December quarter; while rental values are 20.1% lower across the Melbourne City unit market, purchase prices are 2.0% higher.
Queensland – Dwelling values are 13.7% above the previous records; inter state migration of net 9,763 (highest since 2003) has boosted demand 9,763.
South Australia – Quarterly growth for Adelaide dwelling values is +4.3%, up on the five-year average quarterly result of 0.8%. Sales were 36.4% higher across Adelaide, total stock is down -33.6% below the previous five year average.
Western Australia – April marked the eighth consecutive month of growth in state dwelling values, and the 19th consecutive month of growth in rents.
Tasmania – a stand out across all markets: Hobart dwelling values increased 7.0% in the three months to April, while in regional Tasmania they increased 7.7%, the highest uplift of any non-metropolitan market.
Northern Territory – Darwin dwelling values experienced the highest growth rate of any capital city over the past year at 15.3%. This was led by an 18.2% lift in house values and a 9.5% lift in Darwin units.
ACT – the housing market continues to surge with April marking the 20th consecutive month that dwelling values hit a new record high, putting the market value 19.1% higher than the previous record level in April 2019. Total stock on the market was -23.9% below the five-year average