Home values continue to rise

CoreLogic’s national Home Value Index (HVI) has recorded a third consecutive monthly rise home values, increasing by 1.2 per cent in May following 0.6 per cent and 0.5 per cent rises through March and April, respectively.

According to the HVI, Sydney continues to lead the recovery trend, recording an increase of 1.8 per cent over the month, making it the city’s highest monthly gain since September 2021.

Since the lows in January, home values rose 4.8 per cent or a $48,390 increase in the median dwelling value.

Following Sydney were Brisbane and Perth, where values rose 1.4 per cent and 1.3 per cent (respectively) over the month. These were the only other capitals to record a monthly gain of over 1 per cent, however, the rise in values was broad-based with the rate of growth accelerating across every capital last month, according to the HVI.

CoreLogic research director Tim Lawless said the positive trend is a “symptom of persistently low levels of available housing supply running up against rising housing demand”.

“Advertised listings trended lower through May with roughly 1,800 fewer capital city homes advertised for sale relative to the end of April,” Mr Lawless said.

“Inventory levels are -15.3 per cent lower than they were at the same time last year and -24.4 per cent below the previous five-year average for this time of year.

“With such a short supply of available housing stock, buyers are becoming more competitive and there’s an element of FOMO creeping into the market.”

Similarly, PropTrack’s Home Price Index also recorded an increase of 0.33 per cent in national home values for May, bringing prices up 1.55 per cent from the low point recorded in December 2022.

According to PropTrack’s index, home values in the combined capital cities rose 1.34 per cent over the past three months, making it the strongest quarterly growth since the December 2021 quarter.

Much like CoreLogic’s HVI, PropTrack also recorded prices accelerating and broadening in May, as every capital city excluding Darwin (down by 0.01 per cent) posted lifts.

Canberra (0.65 per cent) and Perth (0.64 per cent) recorded the largest increases in May, followed by Sydney and Adelaide (both up by 0.58 per cent), Brisbane (0.33 per cent), Melbourne (0.22 per cent), and Hobart (0.07 per cent).

After leading the market downturn, Sydney has now led the recovery, with prices up 3.03 per cent from the November 2022 low. Prices are now down less than 2 per cent from levels seen in the same period last year.

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