Australia’s home values continue to inch higher, new data shows.
Corelogic’s monthly update revealed this week that dwelling values increased by just 0.4% in the first month of spring. This was broadly in line with the monthly change in July and August at 0.3%.
Capital city results were mixed, with values rising in Sydney (up 0.2%), Brisbane (0.9%), Adelaide (1.3%), Perth (1.6%), and Darwin (0.1%), but falling in Melbourne (down 0.1%), Hobart (0.4%), and Canberra (0.3%).
Nationally, values rose 1% over the September quarter, the lowest rise in the national Home Value Index over a three-month period since March 2023 when the market was moving through the early phases of the current upswing.
Four capital cities recorded a drop through the September quarter, led by Melbourne where values were down 1.1%. Canberra, Hobart and Darwin also recorded declines over the quarter. down 0.9%, 0.8% and 0.7% respectively.
Sydney values have continued to rise, although the 0.5% increase through the September quarter was the lowest result since the three months ending February 2023 when values were down 0.3%.
The quarterly gains in Adelaide look to be topping out with a 4.0% rise, while Brisbane’s growth has eased back to 2.7%, the lowest rise over any three-month period since April last year.
CoreLogic research director Tim Lawless suggests that the slowdown in the pace of growth comes as homeowners increasingly look to sell.
“The flow of new listings coming onto the market was tracking 3.2% higher than a year ago nationally to be 8.8% higher than the previous five-year average for this time of the year”, Lawless said, adding that the rise in inventory is a seasonal trend, with spring and early summer one of the busiest periods of the year for selling.
“However, the flow of freshly advertised housing stock hasn’t been this high at this time of the year since 2021.”
According to Lawless, affordability constraints and reduced borrowing capacity continue to support stronger conditions across housing markets with lower price points.
“Across the combined capitals, lower quartile dwelling values have increased by 12.4% over the past twelve months compared with a 3.8% rise in values across the upper quartile”, he said.
“This trend is evident, to different extents, across every capital city except the ACT and Darwin, which are also the most affordable markets after adjusting for local household incomes.”
Similarly, six of the eight capitals have seen unit values rise by more than house values, or in the case of Melbourne, record a smaller decline, over the September quarter.
Growth conditions across regional housing markets have also eased, with the quarterly trend in the combined regionals index reducing from 2.3% in three months ending April to 1.7% in the June quarter, and more recently to 1.0% over the September quarter.
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