Small towns lead home value growth | Liverpool City Champion

An increase in home values ​​in smaller cities drove growth across the country, despite falling values ​​in Sydney and Melbourne.

The CoreLogic National Home Value Index released on Friday rose 0.7% in March, due to more favorable conditions in Brisbane, Adelaide, Perth and the ACT, as well as several regions.

This offset a decline in values ​​in Sydney and Melbourne.

Australian home values ​​rose 2.4% in the first quarter of the year, adding around $17,000 to the value of a home.

A year ago, values ​​were rising at more than double the current rate, up 5.8% in the three months to March 2021, before the quarterly growth rate peaked at 7% in the three months ending in May 2021.

Sydney’s growth rate fell from a peak of 9.3% in the three months to May 2021 to 0.3% in the first quarter of this year.

Melbourne’s housing market has seen its quarterly growth rate slow from 5.8% in April last year to 0.1% in the past three months.

CoreLogic research director Tim Lawless said there was growing evidence that housing growth rates were losing momentum.

“Virtually every capital city and major region in the rest of the state peaked in the trend growth rate over the past year or earlier this year,” Lawless said.

“The steepest slowdown has been in Sydney, where house prices are most unaffordable, advertised supply is trending up and sales activity is down over the year.”

Exceptions to the trend include regional South Australia and Perth.

Mr Lawless said the trend for annual growth would fall sharply in the coming months, as the strong gains seen at the start of 2021 were removed from the 12-month calculation.

National housing turnover is also slowing, with preliminary estimates of deals for the March quarter 14.3% lower than the same period in 2021, but still 12.2% higher than the previous five-year average. .

The value of regional housing rose 5.1% in the three months to March, compared to the 1.5% increase recorded in the capitals combined.

The Australian Bureau of Statistics reported on Thursday that residential property prices rose 4.7% in the quarter, reflecting historically low interest rates, a recovering labor market and strong demand for housing.

On Friday, separate ABS data showed a 3.7% drop in home loan approvals in February, compared to economists’ forecast for a 1.5% increase.

Home loans approved jumped 2.6% in January.

The sharp drop in February to seasonally adjusted $32.3 billion was primarily due to a 4.7% drop in the value of homeowner loans to homeowners — the first since October 2021.

The drop was seen in most states and territories, with NSW down 10.5%) while Victoria fell 5.2%. The ACT recorded a decline of 23.6%.

The value of home loans to investors also fell 1.8% to $10.8 billion – the first such drop since October 2020.

NATIONAL CORELOGIC HOME VALUE INDEX FOR MARCH

National – up 0.7%, up 18.2%

Sydney – down 0.2%, up 17.7%

Melbourne – down 0.1%, up 9.8%

Brisbane – up 2.0%, up 29.3%

Adelaide – up 1.9%, up 26.3%

Perth – up 1.0%, up 7.0%

Hobart – up 0.3%, up 22.3%

Darwin – up 0.8%, up 10.6%

Canberra – up 1.0%, up 21.6%

Combined capitals – up 0.3%, up 16.3%

Combined Regional – up 1.7%, up 24.5%

Australian Associated Press

Comments are closed.