Below trend growth to continue
Nationally, dwelling values were unchanged in November 2017 according to the CoreLogic home value index.
Nationally, dwelling values were unchanged in November 2017 according to the CoreLogic home value index. The rate of value growth has slowed over recent months due to falls in Australia’s largest housing market Sydney which accounts for around one third of the value of national housing.
Splitting the monthly change out into the combined capital city and combined regional markets shows that capital city dwelling values fell by -0.1% and regional values rose by 0.2%. Over the past three months, capital city dwelling values were 0.2% higher while regional values increased by 0.4%.
On an annual basis, the pace of capital gains has halved over the past six months, with value growth slowing to 5.2% nationally with the combined capital cities recording an increase of 5.5% and combined regional market values up 4.2%. The 5.2% increase in national dwelling values is the slowest annual rate of growth in 12 months. Of course, at that time the first round of macroprudential policy changes was still working its way through lending conditions which was slowing the market however, the 50 basis points worth of cash rate cuts eventually led to a rebound in value growth.
Take a look at the national update or your capital city update by clicking on the relevant link below:
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