Home values rise, breaking 10 months of decline: CoreLogic

Following 10 consecutive months of decline and remaining flat in February (a slight drop of 0.1 per cent), national home values rose by 0.6 per cent in March 2023, according to CoreLogic’s latest Home Value Index (HVI).

The index revealed that the lift in housing values was most evident across the upper quartile of Sydney’s housing market, where house values in the most expensive quarter were up 2 per cent in March, while the upper quartile of Sydney’s unit market was 1.4 per cent higher over the month.

CoreLogic research director Tim Lawless said: “Sydney upper quartile house values fell by -17.4 per cent from their peak in January 2022 to a recent low in January 2023, the largest drop from the market peak of any capital city market segment.

“We may be seeing some opportunistic buyers coming back into the market where prices have fallen the most.”

Mr Lawless attributed the rise to a combination of low advertised stock levels, tight rental conditions, and additional demand from overseas migration.

Furthermore, the regional housing market showed firmer housing conditions, with the combined regionals index rising 0.2 per cent over the month.

Values across regional Western Australia and South Australia remained at cyclical highs despite the 10 consecutive rate hikes by the Reserve Bank of Australia.

South Australia’s Fleurieu-Kangaroo Island SA3 subregion led the capital gains over the month, rising by 2.6 per cent. This was followed by Dubbo, NSW at 2.5 per cent; Wellington, Victoria at 2.4 per cent; and Mid West, Western Australia at 2.1 per cent.

In addition, PropTrack’s latest Home Price Index revealed that national home prices rose slightly by 0.13 per cent in March, with a cumulative increase for 2023 now sitting at 0.49 per cent.

PropTrack’s index showed that despite home prices declining from their peak in most markets, national home prices are still 29.9 per cent above pre-pandemic levels.

Contrary to these findings, AMP chief economist Shane Oliver forecasted that home prices will fall further this year and stated that the current stabilisation is like just a “blip”.

Mr Oliver noted that we’re currently in the middle of a “correction” following price growth over the past two years and suggested that whenever rates go up, house prices “have a bit of dip” in a historical sense.

[RELATED: Home prices rise in March: PropTrack]