PROPERTY MARKET UPDATE

VALUES CONTINUE TO DRIFT LOWER, FALLING 0.6% IN JULY

B Y T I M L A W L E S S , CORELOGIC HEAD OF RESEARCH

Australian housing values racked up a third consecutive month of declines in July, with CoreLogic’s home value index dropping 0.6% over the month, a slight improvement from June when the national series was down 0.7%.

Across the capital cities, only Canberra (+0.6%) and Adelaide (+0.1%) posted a rise in dwelling values over the month, while Melbourne (-1.2%) and Sydney (-0.9%) led the decline, recording the largest month-on-month falls in July.

Regional markets are generally showing more resilience to falling values. Across the combined regional areas, housing values were unchanged in July compared with a 0.8% fall across the combined capital cities index. Regional Victoria (-0.5%) and regional Western Australia (-3.2%) were the only non-capital city markets to record a fall in values over the month.

According to CoreLogic’s head of research, Tim Lawless, housing markets have remained relatively However, with fiscal support set to resilient through the COVID period taper from October and repayment so far. “The impact from COVID-19 holidays expiring at the end of on housing values has been orderly March next year, Mr Lawless to-date, with CoreLogic’s national believes the medium term outlook index falling only 1.6% since the remains skewed to the downside. recent high in April and housing “Urgent sales are likely to become turnover has recovered more common as we quickly after it’s sharp approach these fall in late March and April.” “Across the combined milestones, which will test “Record low regional areas, housing the market’s interest rates, values were unchanged resilience. government support in July compared with Similarly, the recent and loan a 0.8% fall across concerns of a repayment the combined capital second wave holidays for distressed cities index.” of the virus and the potential borrowers have for renewed border helped to insulate the closures and stricter housing market from a more social distancing polices are significant downturn. Advertised likely to further push consumer supply levels have remained tight, sentiment down. This is likely to with the total number of properties weigh on both home buying and for sale falling a further 4.3% in the selling activity more broadly.” 4 weeks to July 27th, sitting 15.2% below where they were this time Click here to read the full article last year. Additionally, increased demand driven by housing specific incentives from both federal and state governments, especially for first home buyers, have become more substantial.”