According to the property data specialists, housing values have continued to rise in 2021, with the median home value hitting a new high of $583,157 in January 2021.
The figures come in CoreLogic’s latest Hedonic Home Value Index, which found that home values were up 0.9 per cent over the month and 3.0 per cent on the year.
Home values have now surpassed pre-COVID levels by 1.0 per cent and are 0.7 per cent higher than the previous peak, set in September 2017.
Every capital city and its surrounding region recorded a rise in housing values over the month, ranging from a 2.3 per cent surge across Darwin to a low of 0.4 per cent rise in Sydney and Melbourne.
Regional housing values rose at more than twice the pace of the capital city markets, with CoreLogic’s combined regionals index having shown a 1.6 per cent increase over the month, a trend which first emerged early in the pandemic.
Regional housing values have surged 6.5 per cent higher since COVID’s onset in March last year and are up 7.9 per cent on last year’s figures.
Home values across regional Victoria and regional NSW rose 1.6 per cent and 1.5 per cent, respectively, in January compared with a 0.4 per cent increase in home values across Melbourne and Sydney.
Generally, capital city values were 0.7 per cent higher for the month, yet housing values were found to have decreased 0.2 per cent since March last year.
Tim Lawless, CoreLogic’s research director, said that NSW and Victoria’s metro and regional housing demand’s divergence is more substantial than in other states.
“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. This demographic trend is further compounded by the demand shock of stalled overseas migration. As Melbourne and Sydney historically receive the vast majority of overseas migrants, these metro areas have been the hardest hit by this demand shock,” Mr Lawless said.
“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 of remote working arrangements,” he added.
According to the report, a trend that has become increasingly evident is houses outperforming units, with housing values having risen by 3.5 per cent nationally over the past six months while unit values have remained unchanged, according to CoreLogic.
Moreover, the past three months has seen every capital city record a stronger result for houses over units.
“Demand for units has diminished through COVID-19 amid record-low levels of investor participation and changing living preferences. At the same time, supply levels are heightened in some precincts. While demand and supply remain imbalanced, we are likely to see units continue to underperform relative to detached housing markets,” Mr Lawless concluded.
According to CoreLogic in November 2020, dwelling values were up 0.8 per cent over the month, building on the recovery first seen in October.
Indeed, Mr Lawless suggested that if the current growth trend persists, the property market is likely to see CoreLogic’s national home value index surpass pre-COVID levels in early 2021.