Perth downturn continues, but Sydney and Melbourne carry on resurgence: CoreLogic
The national dwelling value increased for the first time in nearly two years, according to CoreLogic's Home Value Index for July.
Having seen 0.1 percent declines over June, values were up 0.1 percent over July.
The last time the national value index recorded gains was in September 2017 when values rose 0.3%.
July saw a continued bounce back in house prices in the two biggest capital city markets, Sydney and Melbourne.
Sydney's house value rose 0.2% over July, with unit values increasing 0.3%. Melbourne saw the same gains in houses but a 0.4% jump in unit values.
Only three of the eight capital cities recorded losses in dwelling values. Perth was the biggest hit, with 0.5% declines over July, driven by units which saw 1.1% declines.
Canberra had losses of 0.3%. Houses were down -0.3% and units 0.5%, while Adelaide also saw 0.3% dwelling declines, -0.8% in units and -0.3% in houses.
Corelogic head of research Tim Lawless says since peaking the national index is down 8.3%, but it seems to have found a floor.
“Our national dwelling value index may have found a floor in July, with dwelling values holding firm over the month following a consistent trend towards smaller month-on-month declines through the first half of the year," Lawless said.
“The stabilisation in housing values is becoming more broadly based, with five of the eight capital cities recording a subtle rise in values over the month, while the regional areas of South Australia, Tasmania and Northern Territory also recorded a lift in housing values in July.”
Lawless suggests a number of factors are supporting the turnaround in housing conditions, however lower mortgage rates, improved access to credit, a boost in housing market confidence post the federal election and recent tax cuts are likely the primary drivers.
Other factors include improvements in housing affordability and a reduction in advertised supply levels.
“All of which is creating a stronger selling position for vendors,” Lawless added.
Darwin saw the best gains over July, a 0.4% dwelling value increase driven by both houses (+0.4%) and units (+0.5%).
