{"id":32081,"date":"2021-05-03T12:19:56","date_gmt":"2021-05-03T00:19:56","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=32081"},"modified":"2021-05-03T12:19:56","modified_gmt":"2021-05-03T00:19:56","slug":"corelogic-home-values-continue-to-rise-but-the-pace-of-growth-loses-steam-in-april","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/corelogic-home-values-continue-to-rise-but-the-pace-of-growth-loses-steam-in-april\/","title":{"rendered":"CoreLogic: Home values continue to rise but the pace of growth loses steam in April"},"content":{"rendered":"

PHOTO: CoreLogic\u2019s national home value index<\/strong><\/p>\n

Australian housing values lifted by 1.8% in April according to CoreLogic\u2019s national home value index, with the monthly pace of capital gains easing from a 32-year high in March (2.8%).\u00a0<\/strong><\/p>\n

Although growth conditions have slowed, housing values are still rising at a rapid pace, up 6.8% over the past three months to be 10.2% higher than the COVID low in September last year.<\/p>\n

CoreLogic\u2019s research director, Tim Lawless, says the pace of capital gains could slow further over the coming months as inventory levels rise and affordability constraints dampen housing demand.<\/p>\n

\u201cThe slowdown in housing value appreciation is unsurprising given the rapid rate of growth seen over the past six months, especially in the context of subdued wages growth.\u00a0 With housing prices rising faster than incomes, it\u2019s likely price sensitive sectors of the market, such as first home buyers and lower income households, are finding it harder to save for a deposit and transactional costs.\u201d<\/p>\n

There is already some evidence of fewer first time buyers in the market, with the Australian Bureau of Statistics reporting a -4.0% fall in the value of first home buyer home loans through February, the first drop since May last year.<\/p>\n

Despite the slowdown, positive housing market conditions remain geographically broad-based with every capital city and \u2018rest-of-state\u2019 region continuing to record a lift in dwelling values over the month.\u00a0\u00a0 Darwin (2.7%) and Sydney (2.4%) recorded the largest month-on-month rise in dwelling values, while Perth values recorded the lowest rate of growth amongst the capital cities at 0.8%.<\/p>\n

The four smallest capital cities recorded double digit annual growth (Adelaide 10.3%, Hobart 13.8%, Darwin 15.3% and Canberra 14.2%), reflecting a smaller COVID-related disruption and an earlier start to the growth phase last year.\u00a0 Melbourne is recording the lowest level of annual growth (2.2%) due to a larger downturn, attributable to the extended lockdown period last year.<\/p>\n

The broad trend of houses outperforming the unit sector continued through April as higher density styles of housing experienced less demand amidst elevated supply across some inner city precincts.\u00a0 At the combined capital city level house values (8.6%) have risen at double the pace of unit values (4.3%) over the first four months of the year.<\/p>\n

\u201cA preference shift away from higher density housing during a global pandemic is understandable, however a rise in flexible working arrangements also seems to be supporting greater demand for houses around the outer-fringes of capital cities.\u00a0 Relatively weak investor activity, compounded by a supply overhang in some high-rise precincts, is also dampening price growth in unit markets,\u201d Mr Lawless said.<\/p>\n

READ THE FULL REPORT HERE:<\/strong> CoreLogic Report – April 2021<\/a><\/p>\n

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