The robustshows no sign of slowing down, with the latest data from CoreLogic indicating dwelling values are rising at the fastest rate in 32 years. According to CoreLogic, rose by 2.8% in March, the most significant increase since October 1988. In March, all , led by Sydney, with a robust 3.7% increase in dwelling values. At the same time, the weakest capital city was Adelaide, which still saw 1.5% growth. Regional to perform strongly, increasing value by 2.5%.
The last time house prices rose this quickly in Sydney was in the previous boom in 2015, before the creditintroduced by APRA. In March, the full result means that Sydney and Melbourne have fully recovered from the slight COVID-induced downturn in mid-2020. Sydney prices are back above their 2017 highs by 2.6% and have fully recovered from the -14.9% boom.
Similarly, Melbournehave recovered and are back at record-high levels. We are also starting to see the larger capital cities overtake the smaller capitals that had previously seen robust growth. In the first qua,rterere also closed with solid gains, with dwelling values up by 5.8% nationally. Regarding the units vs. houses, there is still a more robust demand for flower-density property as places increased by twice as many teams over the first quarter. At the same time, the upper end of the . In March, the upper quartile of homes increased in value by 3.7%, outpacing the lower quartile, which showed a 1.6% increase.
Tight Listings Continue for Now
The substantial gains continue to come from record-low. The RBA has made it clear interest rates are likely to remain low for the while listings are also at historically low levels.
Graph of the Cash Rate Target
Total listings nationwide are still 25% below the five-year average. However, that could be slowly starting to change as new listings are on the rise as homeowners gain confidence and look to capitalize on the state of the market. New listings are currently 3% above the five-year average and appear to be trending higher. For the time being, markets across the country are favoring sellers. However, CoreLogic notes that things will likely slow down from the current record-setting pace.
So far, the strong demand from buyers has not been met by increases in inventory levels. However, the sellers will return to the market at some point, as we’ve already started to see new listings on the rise. Similarly, there has been a large influx of first-home buyers, whose decision to purchase a property has likely been by the range of Government incentives on offer. If they haven’t already, many of these incentives are set to end this . While it has been for some time if the housing market continues to overheat, there is also some possibility that we could also see tighter credit policies, which, as we know, can have an immediate impact on demand. For the time being, house to rise, according to CoreLogic. However, we should to slow down.