NAB’s Chief Economist, Alan Oster provides his thoughts on the Australian and Global economy.
Regional housing markets continued to outperform the capital cities in October.
Following five months of consistent declines in residential property values, CoreLogic’s national home value index moved back into positive month-on-month growth through October, posting a 0.4% rise. The lift in home values was broad based, with every capital city apart from Melbourne posting a rise in values over the month.
Dwelling values increased by more than 1% in each of the smallest four capital cities with Brisbane, Adelaide, Hobart and Canberra housing values reaching new record highs.
Although values were lower across Melbourne through October, the trend rate of decline has been easing since mid-September. With a drop of 0.2%, this was the smallest month on month fall in values since the COVID related downturn commenced in April.
The October results show early signs of a divergence between house and unit market performance. The rise in capital city housing values over the month was entirely attributable to a 0.4% lift in house values which offset the 0.2% fall in unit values. Through the COVID period so far, unit values have actually shown a smaller decline in values than houses, but this is likely to change.
Find out the latest news for each capital city by clicking the link and watching the videos below or read the full November 2020 Housing Market Update Transcript.
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