CoreLogic’s national measure of housing values rose by 1.1% in January, up 10 basis points from the December result, when the national index was up 1.0%, but well down from the peak rate of 2.8% in March last year.
Early indications are showing that the housing market is started the year with a similar trend to what we saw late last year. Values are continuing to rise, but nowhere near the rate, we experienced in early 2021. A softening in growth conditions have been influenced by less government stimulus, rising fixed-term mortgage costs, and worsening housing affordability making it more difficult for people to enter the market.
The annual change in national housing values reached a new cyclical high in January, up 22.4% over the year; the highest annual rate of growth since June 1989.
Brisbane recorded the highest annual rate of growth across the capital cities, with housing values up 29.2% equating to approximately $160,000.
Continuing a pattern seen over recent months, the January results showed people are continuing to focus on cities outside of Melbourne and Sydney, with Brisbane and Adelaide leading the pace of capital gains, up more than 2% over the month, while growth in Melbourne, Darwin, Sydney, and Perth recorded substantially softer outcomes.
Regional markets have again recorded a substantially stronger result, with the combined regionals index up 1.8% over the month and 6.3% higher over the rolling quarter, more than double the pace of growth seen across the combined capital cities over the same time frame.
Similar to the capital cities, it was regional Queensland and regional South Australia that led the pace of growth over the month. Regional Australia’s outperformance relative to the capitals has been a feature through most of this cycle to date, driven by a combination of higher demand and lower levels of advertised supply.
If you would like to watch an in-depth analysis of the Australian property market, Eliza Owen from CoreLogic joined Domenic Nesci on the Wealthi podcast this week.
Please reach out to the team to organise a time to have a conversation about how Wealthi can help you build a successful property portfolio.
Chris Hynes is Wealthi’s Global Research Analyst, Based in London