House prices nationwide have carried on where they left off, with values increasing in January. According to the latest data from CoreLogic, house prices were up 0.9% in January, putting them 1.0% higher than when the pandemic officially began.
Once again, Darwin has shown strongto start the year, increasing by 2.3% in January, taking the annual growth rate to 11.4%, making it the strongest capital city market in the country 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 property market was hit with the toughest lockdowns in the country.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 was capital cities that saw just a 0.7% increase. are also 7.9% higher over the past 12 months.regional areas and away from the larger capital cities. This trend appears to continue to start in 2021, highlighted by regional values rising 1.6%, compared to the
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.
“Internal migration data shows more people are leaving Sydney and Melbourne for regional areas, resulting in a transition of activity from the metro regions to the outer fringe and regional markets.
The demand shock of stalled overseas migration further compounds this demographic trend. As Melbourne andmost overseas migrants, these metro areas have been the hardest hit by this demand shock.”
“Better housing affordability, 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 ofarrangements.”
House Price Resilience
When COVID first hit in early 2020, severaland property experts began predicting that house prices would fall of as much as 32% across the country.
Now that we’ve had nearly 12price data, it’s clear that these numbers were a long way off the mark. As it currently stands, are 1.0% higher 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 most markets for some reason. With sentiment rising and selling conditions favoring the vendor, it is reasonable to expect new listing numbers to rise as the year progresses, which may help temper conditions.”
Across the country, total listing numbers are 27.8% lower than last year, tracking 29.3% below the five-year average. This week, RBA Governor Lowe also noted that hecurrent into 2024, putting upward pressure on house prices for the foreseeable future.