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Home values among the nation’s capitals are beginning to diversify, a report has found.
CoreLogic’s Home Value Index (HVI) for July 2024 has recorded a lift in national home values of 0.5 per cent. This has marked the 18th consecutive monthly rise in Australian home values, holding steady with the 0.5 per cent increase the month prior.
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According to the report, CoreLogic’s national HVI has gained 13.5 per cent since the decline of 7.5 per cent recorded between May 2022 and January 2023, with values being “consistently pushed to new highs since November last year”.
Despite headline growth remaining in positive territory, CoreLogic has said that “it is clear” that momentum is beginning to leave the cycle and conditions are “becoming more diverse”.
Over the past three months, three capital cities have recorded drops in housing values, with Melbourne leading the decline with a 0.9 per cent drop, alongside Hobart and Darwin, where values fell 0.8 per cent and 0.3 per cent, respectively.
Additionally, the rolling quarterly pace of growth in Sydney has “slowed markedly” to 1.1 per cent, down from the 5 per cent quarterly gain recorded during the same time in 2023.
CoreLogic’s research director Tim Lawless said available supply is a key factor explaining the diverse outcomes in housing growth trends.
“The number of homes for sale in Brisbane, Adelaide and Perth is more than 30 per cent below average for this time of the year, while weaker markets like Melbourne and Hobart are recording advertised supply well above average levels,” Lawless said.
Indeed, the midsized capitals have bucked the slowing trend seen in Sydney and Melbourne, particularly in Perth, which recorded growth of 6.2 per cent in this period, followed by an accelerating pace of growth in Adelaide of 5 per cent, marking the fastest rolling quarterly pace of growth since May 2022.
While Brisbane recorded values increasing at a quarterly pace of 3.8 per cent, this is down from 4.7 per cent during the same time last year.
PropTrack’s Home Price Index also recorded positive overall growth in national home prices at 0.08 per cent in July, with prices sitting 6.3 per cent higher than a year ago.
On average, July is the slowest month for growth in the calendar year so far, according to PropTrack.
PropTrack senior economist Paul Ryan said: “National home price growth persisted in July, albeit at a slower pace given the seasonally quieter time of the year.
“Strong housing demand pushed prices higher, despite more homes being listed in what is a higher interest rate environment. Slow construction activity, above-average income growth and July’s tax cuts are clearly contributing.
“Further home price growth is expected over the coming months as the market moves into the traditionally busier spring selling season. However, the pace of price growth is likely to remain modest as uncertainty about the path of interest rates and affordability challenges constrain buyers’ budgets.”
[RELATED: House and land prices bolstering household wealth: ABS]
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