The CoreLogic August Home Value Index results showed the recovery in housing values accelerated in August 2019 with national dwelling values increasing by 0.8 per cent over the month
Australia’s housing recovery reached a turning point in August, with the CoreLogic August Home Value Index results revealing that national dwelling values rose for the first time since October 2017.
The increase of 0.8 per cent follows months of deceleration for the downturn, whereby falling values had been losing momentum.
CoreLogic Research Director Tim Lawless said the “significant lift” in values over the month aligned with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remained low. CoreLogic August Home Value Index results – At a glance:
National dwelling values increased by 0.8 per cent over the month – the first monthly increase in values since October 2017 and the largest monthly increase since April 2017.
The rolling quarter saw national values lift by 0.6 per cent – the first rise in values over a three month period since November 2017.
Combined capital city dwelling values are -5.9 per cent lower over the past year while combined regional market values are -2.9 per cent lower.
Australia’s housing recovery reached a turning point in August, with the CoreLogic August Home Value Index results revealing that national dwelling values rose for the first time since October 2017.
The increase of 0.8 per cent follows months of deceleration for the downturn, whereby falling values had been losing momentum.
CoreLogic Research Director Tim Lawless said the “significant lift” in values over the month aligned with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remained low.
CoreLogic August Home Value Index results – At a glance:
National dwelling values increased by 0.8 per cent over the month – the first monthly increase in values since October 2017 and the largest monthly increase since April 2017.
The rolling quarter saw national values lift by 0.6 per cent – the first rise in values over a three month period since November 2017.
Combined capital city dwelling values are -5.9 per cent lower over the past year while combined regional market values are -2.9 per cent lower.
“It’s likely that buyer demand & confidence is responding to the positive effect of a stable federal government, as well as lower interest rates, tax cuts and a subtle easing in credit policy,” he said.
“While the ‘recovery trend’ is still early, it does appear that growth trends are gathering some pace, particularly in the largest capital cities.”
According to the results, housing values increased across five of the eight capitals over the month but slipped lower in Adelaide, Perth and Darwin.
The latest figures represent the third successive month of capital gain in Sydney, Melbourne and Hobart and the second successive month of increases in Brisbane.
The quarterly results indicate combined capital city dwelling values have increased by 1 per cent over the past three months while combined regional market values have continued to trend lower, down -0.6 per cent.
Despite the recent increases in dwelling values, regional Tasmania is the only major region where values are currently at a historic high, with Sydney dwelling values remaining more than 10 per cent below their previous peak (-13.3 per cent) and Melbourne values almost 10 per lower than the peak (-9.5 per cent).
Mr Lawless said while the recovery trend in these two cities continued to strengthen, the expectation is that it would “take some time” for values to return back to their previous highs.
The weakest market conditions continue to emanate from Perth and Darwin, where values dipped further over the month, although the three-month trend in both cities is suggesting an improvement in the rate of decline.
*Article extracted from therealestateconversation.com.au