Home values defy gravity for 15th month

Australia has clocked its fifteenth month in a row of house price growth despite wobbly economic conditions, with prices gaining a further 0.6 per cent in April.

Dwelling values were growing at the same pace in April as in both February and March, according to Corelogic’s home value index.

Research director at the real estate data firm, Tim Lawless, said home values were still rising despite higher interest rates, low sentiment, worsening affordability and ongoing cost of living pressures.

Housing values are now up 11.1 per cent, or around $78,000, since the trough in January last year.

However, the prospect of higher-for-longer interest rates, stubborn price pressures, worsening housing affordability and slowing economic activity could weigh on price growth.

Yet working in the other direction was a supply shortage of housing that ‚Äúdoesn‚Äôt look like it will change in the near future‚ÄĚ, Corelogic found..

Perth recorded another robust two per cent lift in home prices over the month, the fastest increase of any capital city.

The Western Australian capital, Adelaide and Brisbane have been stand-out performers of late, although the Queensland property market was showing signs of losing momentum.

‚ÄúAffordability pressures may be impacting the pace of growth across the city, following a nearly $300,000 increase in values since the onset of COVID in March 2020, the largest dollar value increase of any capital,‚ÄĚ Mr Lawless said.

The strongest growth was occurring in the lower range of the market in almost every capital city, with the exception of Darwin.

Similarly, growth in unit prices was typically outpacing house values.

 

Poppy Johnston
(Australian Associated Press)

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