Corelogic’s home value index reveals that home values fell 0.2% nationally in June, after nine consecutive months of declines.
However, the good news for homeowners is that national dwelling values remain 32.4% higher than five years ago, and have only tracked 0.8% lower over the past year.
The ongoing downward trend is simply the result of tighter finance conditions and less investment activity; however APRA’s 10% investment speed limit will be lifted this month so investor activity may increase in the months ahead.
Monthly change in capital city values
Hobart continues to show the strongest capital gain trend over the past 3 months but its pace has eased. Brisbane, Adelaide and Canberra values have trended higher across the quarter.
Regional market trends
Property values happily continued their upward trajectory across regional areas, recording a 0.6% rise over the quarter - the exceptions being regional Queensland and Western Australia, where values crept back 0.2% and 0.1% respectively. Regional Victorian markets have shown the highest rates of capital gain in the June quarter (+1.8%), and regional Tasmania remains closely behind with 1.7% growth. No wonder First National’s Tasmanian offices report strong levels of enquiry.
Demand for country property continues unabated, the result of demand rippling out from congested metro areas. NSW currently records 5 of the country’s top 10 performing regional markets and Victoria’s Geelong tops the list (+11%) as the only country market to record double-digit growth over the financial year. Ballarat too has benefited, as has Sydney’s Central Coast, where values are up 1.6% over the past 12 months.
Tough times at the top end
Times remain tough for the upper echelons of Australia’s real estate market, with the most expensive quartile falling 7.3% in Sydney and 2.5% in Melbourne over the past 12 months.
Affordable properties hold firm
First homebuyers are clearly grabbing opportunities created by historic low interest rates and a quieter marketplace, their transactions surging over the past year.
The most affordable areas of Melbourne remain in a strong growth position. In fact, five of the top 10 best performing affordable areas across the 2017/18 financial year were located across Melbourne’s outer metropolitan area. The strong performance of properties in lower price ranges is the result of relative affordability as well as increased first homebuyer activity since last July, when stamp duty concessions became available.