Australia’s housing value rebound continued into 2020 with the CoreLogic national home value index up by 0.9% over the first month of the year. This now takes the annual growth rate to 4.1%; the fastest pace of growth for a twelve-month period since December 2017.
Housing values rose in January across every capital city and rest-of-state region, apart from regional South Australia, where values held firm over the month. According to CoreLogic head of research Tim Lawless, this demonstrates a broader recovery trend which initially began in Sydney and Melbourne midway through 2019, and gradually spread to other areas of the country.
Nationally, housing values recovered 6.7% since finding a floor in June last year; however, CoreLogic’s national index remains 2.2% below the October 2017 peak.
Tim Lawless said, “With housing values rising at the quarterly pace of 3.7%, we are likely to see a nominal recovery in the national home value measure within the next two-to-three months.”
Four of Australia’s eight capital cities are already showing home values at new record highs: Brisbane, Adelaide, Hobart and Canberra. Sydney values need to recover a further 5.4% before posting a full nominal recovery, and Melbourne values need to see an additional 1.2% lift. Perth and Darwin will take a much longer time to see values recover. Although the Perth market seems to be moving into recovery, housing values remain 21.3% below their 2014 peak and Darwin values are 31.8% below their peak.
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