Welcome to CoreLogic’s housing market update for December 2023.
Housing values are still rising at a rapid pace, up 6.8% over the past three months to be 10.2% higher than the COVID low in September last year.
Australian housing values lifted by 1.8% in April according to CoreLogic’s national home value index, with the monthly pace of capital gains easing from a 32-year high in March. Although growth conditions have slowed, housing values are still rising at a rapid pace, up 6.8% over the past three months to be 10.2% higher than the COVID low in September last year.
The slowdown in housing value appreciation is unsurprising given the rapid rate of growth seen over the past six months, especially in the context of subdued wages growth. With housing prices rising faster than incomes, it’s likely price sensitive sectors of the market, such as first home buyers and lower income households, are finding it harder to save for a deposit and fund transactional costs.
There is already some evidence of fewer first time buyers in the market, with the Australian Bureau of Statistics reporting a 4.8% fall in the value of first home buyer home loans through February and March.
Despite the slowdown, positive housing market conditions remain geographically broad-based with every capital city and ‘rest-of-state’ region continuing to record a lift in dwelling values over the month. Darwin and Sydney recorded the largest month-on-month rise in dwelling values, while Perth values recorded the lowest rate of growth amongst the capital cities at 0.8%.
The four smallest capital cities recorded double digit annual growth, reflecting a smaller COVID-related disruption and an earlier start to the growth phase last year. Melbourne is recording the lowest level of annual growth due to a larger downturn, attributable to the extended lockdown period last year.
Find out the latest news for each capital city by clicking the link and watching the videos below or read the full Australian housing market update May 2021 transcript.
© National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.