House month. Over the past three months, national in Australia now sitting at $634,355.to boom in May, with the latest data showing values increased by 2.2% and 10.6% annually. According to CoreLogic, Sydney continues to lead the nationwide price surge, rising by 3.0% in May. All the capital cities increased in value, with by 1.8%. . Perth remains the weakest capital city market but rose 1.1%, While Hobart and Darwin also continued their recent solid performances—last
After lagging past three months and, in May, were 2.3% higher, compared to the 2.0% increase in regional areas. Over the quarter, regional areas have lagged with a 6.5% increase versus 7.1% in the capital cities., prices in the capital cities have now started to outpace the regional areas. Last year, we saw a significant shift from people looking to move away from capital cities. However, many homebuyers are clarifying that the time is right to jump of regional areas. Capital cities have outperformed regional areas twice in the
The top End of the Market is Moving.
While the boom inis evident for all to see, CoreLogic’s Tim Lawless notes that it is now the premium end of the market, notably in Sydney and Melbourne, really driving the gains. “Despite the consistently strong headline results, the underlying trends have shifted over the past year,” Mr. Lawless said. “From a geographic perspective, the smaller the housing market out of the COVID slump, but now Sydney has risen through the ranks to record the largest capital gain over the past three months with values up 9.3%.”
Stock Levels Remain Low
Low stock, high demand, and record-low interest ratesin most areas. CoreLogic notes that while supply has increased, demand is still outpacing supply in most locations. The median time on the market remains around its of 25 days, while vendor discounting rates are also around record lows. The typical discount from the original asking price was recorded at -2.7 % over the past three months. “The sales to new remains around 1.1, meaning for every new listing, there is more than one sale occurring,” said Mr. Lawless. “This rapid absorption rate keeps advertised inventory levels extremely low, in new listings. Consequently, vendors remain in a strong selling are weak at the negotiation table.”
Positive Cashflow Opportunities
With values rising, CoreLogic believes there are still several opportunities for. With the average mortgage rate around 2.5%, many cities and regional areas still show increasing rental yields, making them more cashflow positive than in . Notably, Perth and Darwin have seen 15-20% increases in rental yields over the past 12 months due to an extremely tight supply of rentals. CoreLogic notes that the opportunity for positively geared rising and rental vacancies still high in many areas.
Housing Boom Rolls On
CoreLogic says that the housing boom is in full swing across the country and is not slowing down for now. Theyhas had virtually no impact on housing markets, and the overall jobs market is improving. CoreLogic expects housing values to continue to 2021 and into 2022, albeit at a gradually slower pace.