House prices nationwide have continued where they left off property market was hit with the toughest lockdowns in the country., with values increasing in January. According to the latest data from CoreLogic, were up 0.9% across the country in January, putting them 1.0% higher than when the pandemic officially began. Once again, Darwin has shown strong price city market over the past 12 months. Meanwhile, Perth, Hobart, Brisbane, Adelaide, and Canberra have all seen a solid start to the new year, with increases ranging from 0.9% to 1.6%. The two with lockdowns, Sydney and Melbourne, continue to trail the other capital cities, seeing a growth of 0.4% in January. Notably, Melbourne is only -2.1% lower over the past 12 months after the
Regional Strength Continues
One of the clear trends in 2020 wasregional areas and away from the larger capital cities. This trend appears to start in 2021, highlighted by regional values rising 1.6%, compared to the capital cities that saw just a 0.7% increase. Regional over the past 12 months. CoreLogic notes that the moves towards the regions have been particularly pronounced in Sydney and Melbourne. CoreLogic’s Head of Research, Tim Lawless, notes several fundamental factors behind the numbers. The demand shock of stalled overseas migration further compounds this demographic trend. As Melbourne and Sydney historically receive most overseas migrants, these metro areas have been the hardest hit by this demand shock.” “Better , an opportunity for a lifestyle upgrade, and lower density housing options are other factors that might be contributing to this trend, along with the newfound popularity of remote working arrangements.”
House Price Resilience
When COVID first hit in early 2020, severaland property experts began predicting that house prices would fall by as much as 32% across the country. Now that we’ve had nearly 12 price data, it’s clear that these numbers were a long way off the mark. As it currently stands, house than pre-pandemic, with only Sydney and Melbourne yet to recover fully.
A Sellers Market
Tim Lawless also suggests that property markets across the country are now predominately in a seller’s market, highlighted by strong demand andlevels. “This is a seller’s market, but we are still seeing below-average vendor numbers across most markets for some reason. With sentiment rising and selling conditions favoring the vendor, it is reasonable to expect new listing numbers to progresses, which may help temper housing market conditions.” Across the country, total listing numbers are 27.8% lower than , tracking 29.3% below the five-year average. , RBA Governor Lowe also noted that he expects interest rates to remain current into 2024, putting upward pressure on house prices for the foreseeable future.