VALUES INCREASE IN JUNE BUT THE PACE HAS SLOWED

 (ARTICLE FROM CORE LOGIC Tim Lawless)

Australian housing values moved through a fourth month of recovery with CoreLogic’s national Home Value Index (HVI) rising 1.1% in June, decelerating slightly from the 1.2% gain recorded in May.

Since finding a floor in February, the national measure of housing values has gained 3.4%, however, the market remains -6.0% below peak levels recorded in April 2022. That is the equivalent of the median dwelling value still being -$45,771 below a peak of $768,777. (not sure what you can buy in Perth in the Western Suburbs for that certainly not a house, townhouse or villa yes)

Every capital city except Hobart (-0.3%) saw dwelling values rise in June, with CoreLogic’s research director, Tim Lawless, noting that Sydney continues to lead the cycle.

“Sydney home values increased another 1.7% in June, taking the cumulative recovery since the January trough to 6.7%.  In dollar terms, Sydney’s median housing values are rising by roughly $4,262 a week,” he said. (Sydney has always lead the parade, so many people pour into that city)

A lack of available supply continues to be the main factor keeping upwards pressure on housing values, Mr Lawless said.  “Through June, the flow of new capital city listings was nearly -10% below the previous five-year average and total inventory levels are more than a quarter below average.  Simultaneously, our June quarter estimate of capital city sales has increased to be 2.1% above the previous five-year average.” (Whose fault is that - I would think the Government as they have not had the foresight to build more homes)

Although housing values continue to record a broad-based upswing, the pace of growth across most capitals eased in June.  “A slowdown in the pace of capital gains could be a reflection of a change in sentiment as interest rate expectations revise higher,” Mr Lawless said.  “Higher interest rates and lower sentiment will likely weigh on the number of active home buyers, helping to rebalance the disconnect between demand and supply.” (This will also slow the investors in buying as well as they cannot make a profit with all the high costs)

Regional housing values have also trended higher, albeit at a slower pace relative to the capitals.  The combined regionals index also recorded a fourth consecutive month of growth, taking housing values 1.2% higher than the recent low in February.

Mr Lawless notes the softer growth trend across regional areas of the country align with recent shifts in demographic factors.

“After regional population growth boomed through the worst of the pandemic, internal migration trends have normalised over the past year, resulting in less housing demand across regional markets. Additionally, housing demand from overseas migration is skewed towards the capital cities rather than the regions.”

Regional Victoria is the only rest of state market where quarterly housing value trends remain negative, down -0.4% in June to be -1.3% lower over the quarter.

“Value declines were evident across most the SA4 sub-regions of regional Victoria, including the areas adjacent to Melbourne. In June, Geelong home values were down -0.7%, Ballarat values fell -0.3% and Bendigo was down -0.9%,” Mr Lawless said. (It's always about the Eastern States isn't it - little old Perth what does it matter?)

“The weaker conditions across regional parts of the state may be related to a normalisation in migration flows as more regional residents move to the city, along with a substantial narrowing of the affordability gap between regional Victoria and Melbourne through the recent upswing.”

Despite the recent uptick, most regions continue to see housing values below their recent cyclical highs. Hobart housing values have recorded the largest cumulative decline, holding -12.9% below the record high in May last year.  Across the capital cities, Perth is the only capital where home values are at record highs, having recovered from the relatively mild -0.9% decline through the downturn.  Adelaide home values are only -0.3% below record highs and likely to reach a new high point in July. (Wow we cracked a mention) 

Across the regional markets, Regional NSW is recording the largest drop from peak through to the end of June, with values down -9.6%, followed by Regional Victoria (-8.4%) and Regional Tasmania (-7.2%). At the other end of the spectrum, dwelling values in Regional South Australia and Regional Western Australia, where housing market conditions have mostly remained positive through the rate hiking cycle to-date, recorded new cyclical highs in June.

Download the complete June Home Value Index for graphs, charts and in-depth commentary and analysis on:

• Listings
• Sales volumes
• Rents
• Rental yields
• Top 10 Capital city SA3s with highest 12 month value growth – Dwellings, and
• Top 10 regional SA3s with highest 12 month value growth – Dwellings.

https://www.corelogic.com.au/__data/assets/pdf_file/0016/15910/CoreLogic-HVI-Jul-2023-FINAL.pdf

You know with all the information that is out there Perth doesn't get alot of attention and yet we have people pouring into our state every week.

Western Suburbs the two bedroom furnished renovated are getting $500-$550 per week now and the one bedrooms furnished renovated up to $410 per week no wonder the Eastern States investors are snapping ours up.

MAKE YOUR OWN DECISIONS & GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!! 

KEEPING IT REAL IS OUR MOTTO!!