Home values lifted again in May, posting their strongest monthly growth since November 2021, CoreLogic’s national Home Value Index has revealed.
The latest data for the month of May shows that values grew 1.2% in May, following increases of 0.6% and 0.5% through March and April respectively.
Sydney continues to lead the recovery trend, posting a 1.8% lift in values over the month, recording the city’s highest monthly gain since September 2021. Since moving through a trough in January, Sydney home values have risen by 4.8%, or the equivalent of a $48,390 lift in the median dwelling value.
Brisbane (1.4%) and Perth (1.3%) are the only other capitals to record a monthly gain of more than 1.0%, however the rate of growth accelerated across every capital city last month.
CoreLogic Research Director Tim Lawless noted that the positive trend is a symptom of persistently low levels of available housing supply running up against rising housing demand.
“Advertised listings trended lower through May with roughly 1,800 fewer capital city homes advertised for sale relative to the end of April.
“Inventory levels are 15.3% lower than they were at the same time last year and 24.4% below the previous five-year average for this time of year”, Lawless noted, adding that with such a short supply, buyers are becoming more competitive and there’s an element of FOMO creeping into the market.
“Amid increased competition, auction clearance rates have trended higher, holding at 70% or above over the past three weeks”, he said.
“For private treaty sales, homes are selling faster and with less vendor discounting.”
The trend in regional housing values has also picked up, with the combined regionals index rising half a percent in April, following a 0.2% and 0.1% rise in March and April.
Although regional home values are trending higher, the rate of gain has not kept pace with the capitals. Over the past three months, growth in the combined capitals index was more than triple the pace of growth seen across the combined regionals at 2.8% and 0.8% respectively.
Premium housing markets in Sydney continue to lead the recovery trend. After recording a larger drop in values, Sydney’s upper quartile (the most expensive quarter) stands out with the highest rate of growth, gaining 5.6% over the past three months compared with a 2.6% rise in more affordable lower quartile values.
Lawless noted, however, that buyers targeting the premium sector of the market are still buying at well below peak prices, as with most other sectors. In fact, Perth is the only capital city where dwelling values have returned to record highs.
