Below trend growth to continue
CoreLogic’s national Home Value Index up 2.2% in May - a stronger result compared with the 1.8% lift in April.
Housing markets around Australia continued to surge last month with CoreLogic’s national Home Value Index up 2.2%. The rise in May was a stronger result compared with the 1.8% lift in April, but weaker than the 32-year high recorded in March when values surged 2.8%.
Growth conditions remained broad based with home values up by more than 1% across every capital city over the month, with both house and unit values lifting across the board. Of the 334 sub-regions analysed by CoreLogic, 97% of them have recorded a lift in housing values over the past three months. Such a synchronised upswing is an absolute rarity across Australia’s diverse array of housing markets.
Across the capital cities, the monthly change in dwelling values ranged from a 1.1% rise in Perth through to a 3.2% jump in Hobart. Across the non-capital city regions, conditions were more diverse. Regional NSW led monthly gains with a 2.5% increase, while values in regional WA had the weakest result dipping one tenth of a percentage point.
Despite the consistently strong headline results, the underlying trends have shifted over the past year. The most expensive end of the market is now driving the highest rate of price appreciation across most of the capital cities, whereas early in the growth cycle it was the most affordable end of the market that was the strongest.
From a geographic perspective, it was the smaller capital cities that led the housing market out of the COVID slump, but now Sydney has risen through the ranks to record the largest capital gain over the past three months with values up 9.3%.
Find out the latest news for each state by clicking the link and watching the videos below or read the full Housing Market Update June 2021 Transcript
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