Australian home values continue to rise, with Brisbane leading the charge in October
CoreLogic’s national home value index, released on Monday morning show dwelling values rose 1.5% in October nationally, with this rate of growth being almost identical to trends enjoyed in August and September.
Brisbane has taken over as the fastest growing market with housing values up 2.5% in October. This was followed by Adelaide and Hobart, with both dwelling markets increasing
2.0% in value over the month. In Sydney and Melbourne, the monthly rate of growth has more than halved since the highs seen in March 2021, when they reached a monthly growth rate of 3.7% and 2.4% respectively.
Nationally home values are up 21.6% over the year to October, with half the capitals recording an annual growth rate in excess of 20%.
Breaking down the numbers even further: (maybe a bit more aesthetically pleasing as a bullet point?)
- Sydney up 1.5% in October, houses up 1.6% versus units up 1.2% and housing enjoying a stunning annual increase of 30.4%
- Melbourne up 1.0% in October, houses up 1.0% versus units up 1.0% and housing enjoying an annual increase of 19.5%
- Brisbane up 2.5% in October, houses up 2.8% versus units up 1.3% and housing enjoying an annual increase of 24.8%
- Perth down 0.1% in October, houses down 0.1% versus units up 0.1% and housing enjoying an annual increase of 16.7%
As discussed in previous months, persistently low levels of housing inventory have been a central factor in the upwards pressure on housing prices.
Listings are now trending upwards as the spring/summer selling seasons come to the fore; coupled with worsening affordability, this has the potential to curtail the demand for property at rates previously seen throughout this year.
As the economy continues to benefit from easing COVID-19 restrictions, current low interest rates should continue to support demand, along with tight advertised supply levels and improving consumer sentiment.
Not only is the rate of growth still easing, but we are also seeing more listings come on the market at a time when housing demand is likely to be dented by tighter credit conditions and worsening affordability. Looking forward, downside risks for the housing sector are rising.
Although housing risks are becoming more evident, the short-term view is for further growth in values, albeit at a slower rate than what has been seen over the previous 12 months.
Full Report can be found here: https://www.corelogic.com.au/sites/default/files/2021-10/211101_CoreLogic_Oct_homevalueindex_Nov1_2021_FINAL.pdf