The nation’s home values have risen for the first time in 10 months, according to data for March.
After remaining virtually flat in February at -0.1 per cent, CoreLogic’s national Home Value Index was up 0.6 per cent last month, the first month-on-month rise since April 2022.
The rise was due to low advertised stock levels, extremely tight rental conditions and additional demand from overseas migration, according to CoreLogic research director Tim Lawless.
“Although interest rates are high and there is an expectation the economy will slow through the year, it’s clear other factors are now placing upwards pressure on home prices,” Lawless said.
“Advertised supply has been below average since September last year, with capital city listing numbers ending March almost 20 per cent below the previous five-year average.
“Purchasing activity has also fallen but not as much as available supply; capital city sales activity was estimated to be roughly 7 per cent below the previous five-year average through the March quarter.”
The lift had been most evident across the upper quartile of Sydney’s housing market, Lawless said.
House values within the most expensive quarter of Sydney’s market were up 2 per cent in March and the upper quartile of the Sydney unit market was 1.4 per cent higher for the month.
“Sydney upper quartile house values fell by 17.4 per cent from their peak in January 2022 to a recent low in January 2023, the largest drop from the market peak of any capital city market segment,” he said.
“We may be seeing some opportunistic buyers coming back into the market where prices have fallen the most.”
Melbourne’s home values rose 1.6 per cent, Perth’s by 0.5 per cent and Brisbane just pulled ahead with a 0.1 per cent rise.
Hobart recorded the largest drop in home values among the capital cities, down 0.9 per cent for the month.
Housing values across the southern most capital have fallen 12.9 per cent since peaking in May last year, overtaking Sydney as the largest cumulative fall from peak across the capital cities. However, the pace of decline has been easing across Hobart over the past three months.
Canberra (-0.5 per cent), Darwin (-0.4 per cent) and Adelaide (-0.1 per cent) also recorded a decline in values for the month.
