CoreLogic National housing market update [video]
- Posted on February 12, 2024
Australia’s housing upswing continued through the first month of 2024 with CoreLogic’s National Home Value Index rising by 0.4% in January.
That was up from the 0.3% increases seen in November and December, and it marks the 12th straight month of value rises.
Beneath the headline result, housing trends remain diverse around the country.
Melbourne, Hobart, and the ACT all recorded a subtle decline over the month, while Perth, Adelaide, and Brisbane values continue to rise at the monthly rate of 1% or more.
The remaining capital cities recorded relatively flat conditions over the month.
House values continued to rise at a faster rate than unit values in January, with the gap between the median capital city house and unit value rising to a record high of 45.2%.
Such a wide gap is the result of house values recording more than three times the capital gain of units since the onset of the pandemic.
Since March 2020, capital city house values have surged by 34%, compared with an 11% rise across the unit sector.
This trend continued in January, with house values up 0.5% over the month, adding around $4,800 to the median house value, while units increased by a small 0.1%, equivalent to a $900 lift.
It seems that most Australians are willing to pay a higher premium than ever for a detached home.
Regional markets are now showing a stronger trend in value growth relative to the capital cities.
The combined regional index rose by 1.2% over the rolling quarter, compared with a 1% rise across the combined capitals index.
Both the combined capitals and the combined regional markets are losing momentum in the pace of value growth, but the capital city trend is experiencing a sharper slowdown, mostly due to the flattening of growth conditions in Melbourne and Sydney.
Across the other states, regional WA, South Australia, and Queensland continue to record a slower pace of growth relative to the capital city counterparts.
These are also the three regional markets where dwelling values are at record highs.
Despite worsening housing affordability, the volume of home sales has held slightly above average over the past three months.
CoreLogic estimates there were over 115,000 dwellings sold over the three months ending January, 11.9% higher than at the same period last year, and 0.5% above the previous five-year average for this time of the year.
Although households are dealing with the ongoing cost of living pressures, high interest rates, low consumer sentiment, and affordability constraints, homes are still selling.
Housing demand has been buoyed by high migration, but also by tight rental markets that have probably incentivised renters to transition towards home ownership if they can afford to do so.
Now let’s take a look at each of the capital city housing markets.
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Perth Housing Market Update [Video]
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Australia’s housing upswing continued through the first month of 2024 with CoreLogic’s National Home Value Index rising by 0.4% in January. That was up from the 0.3% increases seen in November and December, and it marks the 12th straight month of value rises. Beneath the headline result, housing trends remain diverse around the country. Melbourne,…