Home values jumped another 0.6% in April – the nation’s 15th successive month of growth.
According to CoreLogic’s national Home Value Index (HVI), the increase has added a further $4,720 to the national median dwelling value. It brings the total increase since the January 2023 trough to an impressive 11.1%, or $78,000.
As an experienced real estate agent in your area, we believe several factors are fuelling continued value growth. Below, we’ve listed the top reasons.
- Supply and demand imbalance: The chronic shortage of available housing is the primary driver, creating a competitive environment where buyers are often forced to bid above asking prices.
- Multi-speed market: Mid-sized cities are leading the growth charge. Perth saw a remarkable 2% rise in April, followed by Adelaide (1.3%) and Brisbane (0.9%). This reflects the relative affordability and lifestyle appeal of these cities.
- Affordable segment outperformance: Growth is most pronounced in the lower end of the market, particularly for units and cheaper houses. This presents urgency for first-time buyers and investors who want to enter the market.
- Regional strength: Regional markets are outpacing capital cities in quarterly growth, highlighting the ongoing shift towards regional living and its potential for long-term value appreciation.
- Rental market heat: National rents climbed 0.8% in April, with most capitals seeing quarterly increases above 2%. Perth leads with a 3.9% quarterly rise, signalling a strong rental market for investors.
Market Dynamics: A Closer Look
CoreLogic data highlights some interesting factors nationwide, revealing possible opportunities for local investors. The survey finds that while the overall trend is positive, there are nuances. These include:
- Sydney and Melbourne stabilisation: The pace of growth has slowed in Sydney and Melbourne with April figures at 0.4% and -0.1% respectively. This may indicate a gradual return to more balanced market conditions.
- Sales peak over: Home sales appear to have peaked in November 2023, likely due to affordability constraints and low consumer sentiment. While sales remain above the five-year average, a further slowdown is possible until interest rates decline.
CoreLogic’s Research Director Tim Lawless said: “The quarterly pace of growth in Perth at 6% is approaching the cyclical highs seen during the pandemic when interest rates were at rock bottom”. Meanwhile, the Brisbane market is showing signs of slowing, potentially due to affordability pressures.
The property market remains dynamic and full of potential. Here are some key takeaways for buyers, sellers, and investors:
- Buyers: Explore opportunities in mid-sized capitals and regional markets where growth and affordability are relatively better.
- Sellers: Leverage the current seller’s market conditions for a favourable sale price.
- Investors: The rental market is hot, making now an excellent time to consider investment properties. Focus on affordable segments and regions with strong growth potential.
This information is based on CoreLogic’s April 2024 Home Value Index. While it provides valuable insights, individual market conditions may vary. Please come and talk to our agents to understand what’s happening in our area.