Login
ISCOVER
The start of a long-awaited interest rate easing cycle in February has helped lift national home values, according to CoreLogic.
After falling for three consecutive months, the rolling quarterly trend for national dwelling values bounced back to end the first quarter in positive territory, according to CoreLogic (soon to rebrand as Cotality).
The Monthly Housing Chart Pack Report, produced by the property analytics company, showed quarterly values rose 0.7 per cent in the March quarter, after borrowers flocked to market following the Reserve Bank of Australia’s (RBA) February rate cut.
Despite the uptick in values over the quarter, the annual trend continued to lose momentum, with values up just 3.4 per cent over the year to March.
However, the moderation comes as values have skyrocketed 39.1 per cent over the past five years, adding the equivalent of around $230,000 to the national median value.
Over the March quarter, dwelling values increased across all capitals with the exception of Canberra, where they dipped 0.1 per cent.
In Sydney, quarterly dwelling values rose 0.4 per cent. However, the 28-day rolling growth rate has started to lose momentum, easing from a 0.7 per cent increase over the four weeks to 15 March to a 0.1 per cent lift in the 28 days to 8 April.
Quarterly dwelling values in Melbourne increased by 0.3 per cent, although the same measure over the past year dropped by 2.6 per cent.
Dwelling values increased by 0.9 per cent in Brisbane, 1.0 per cent in Adelaide, 0.2 per cent in Perth, 0.2 per cent in Hobart, and 2.8 per cent in Darwin.
Sales growth shows market strength
The rolling 12-month sales count was more than 500,000 in March, CoreLogic estimated.
The measure was 2.1 per cent below the recent peak record in December but up 4.6 per cent compared to last year and 4.1 per cent above the previous five-year average.
The growth in sales has likely been boosted by improved borrower sentiment, which has been helped by easing serviceability, falling interest rates, and strong equity positions.
Easing mortgage stress could also help sustain home sales growth.
Looking ahead, CoreLogic said that despite the unknown impacts of US tariffs, markets widely anticipate the RBA to lower the cash rate when the Monetary Policy Board next meets in May.
“If the core quarterly CPI measure for March comes in under the 3 per cent mark, it looks increasingly likely the next rate cut will be around the corner,” CoreLogic said.
[Related: Home prices reach record high in March]
JOIN THE DISCUSSION