The latest CoreLogic Home Value Index report for July 2024 offers a detailed look at Australia’s housing market, with insights that homeowners and buyers alike will find valuable. Let’s explore the key points.
A national overview of moderate gains
Nationally, dwelling values increased by 0.7% in June, culminating in an 8% rise over the financial year. This equates to an average wealth boost of $59,000 for homeowners, bringing the median dwelling value in Australia to $794,000.
Sydney’s Strength, Melbourne’s Struggles
Sydney recorded a 6.3% annual increase in home values, with a median price of $1,170,152, despite a modest 0.5% rise in June. In contrast, Melbourne saw a slight annual growth of 1.3%, with a 0.2% decline in June, highlighting a more challenging market.
Brisbane and Perth: Leading the Pack
Brisbane and Perth showed impressive performance. Brisbane’s home values rose by 15.8% over the year, while Perth experienced are markable 23.6% increase, pushing its median home value to $757,399.
Regional Areas: Consistent Growth
Regional areas also experienced growth, with combined regional values increasing by 7% annually. The Barossa Valley in South Australia stood out with an 18.49% rise, indicating strong interest in regional properties.
Rental Market: Landlords Benefit
The rental market remains robust, particularly in Perth, where house rents increased by 13.1% over the year. Melbourne’s units saw a 9.2%rise, although Hobart recorded a modest 2.2% increase in house rents. Overall, the rental market continues to favour landlords.
Listings and Sales: High Demand, Low Supply
Despite an increase in new listings, the total advertised supply remains 18% below the five-year average. Homes are selling quickly, especially in Perth, which saw a29% jump in sales compared to historical averages.
Mortgage Arrears: Stability Amidst Challenges
Mortgage arrears are relatively stable at 1.6%, slightly below pre-COVID levels. This suggests that while financial pressures are present, the overall market remains resilient. Most homeowners are still selling at a profit, with only 5.7% experiencing a loss.
Looking Ahead: Continued Growth
Looking ahead, the housing market is expected to continue its growth trajectory, despite potential risks such as high household debt and possible interest rate hikes. With demand outstripping supply, home values are likely to keep rising in the near term.
Monthly change in capital city home values
