P R O P E R T Y M A R K E T U P DAT E
HOME VALUE INDEX CONTINUES TO FALL, DOWN -0.6% IN JUNE
BY T I M L AW L E S S , H E A D O F R E S E A R C H , CO R E LO G I C
Home Value Index shows Australia’s housing downturn builds momentum in June, driven by sharper falls in Sydney and Melbourne and weakening conditions elsewhere. CoreLogic’s national Home Value
CoreLogic Research Director,
continue to gather steam and
Index (HVI) recorded a second
Tim Lawless, noted the housing
become more widespread.”
consecutive month of value
market’s sharper reduction in
declines in June, down -0.6%,
growth coincides with the May cash
to be -0.2% lower over the June
rate hike, surging inflation and low
quarter. Continued falls in Sydney
consumer sentiment.
dwelling values (-1.6% month and -2.8% quarter) and Melbourne (-1.1% month and -1.8% quarter) were the primary drivers of this month’s steeper drop, but housing values were also down in Hobart (-0.2% month and -0.1% quarter) as well as regional Victoria (-0.1% month and +1.2% quarter). Every capital city and broad rest of state region is now well past their
The combined regionals index remained in positive growth territory in June, albeit slightly, rising 0.1%, reducing quarterly
“Housing value growth has been
growth from a peak of 6.6% in
easing since moving through
April last year, to 2.0% over the
a peak in March last year, when
three months to June. In contrast,
early drivers of the slowdown
the combined capital cities index
included rising fixed term
was down -0.8% over the June
mortgage rates, an expiry of fiscal
quarter, reducing from a peak of
support, a trend towards lower
7.1% over the three months to May
consumer sentiment, affordability
last year.
challenges and tighter credit conditions,” he said.
Unit markets are holding their value a little better than houses
“More recently, surging inflation
across the largest capitals. Sydney
and a rapidly rising cash rate
recorded a -3.0% drop in houses
have added further momentum
values through the June quarter
Australia’s third largest city,
to the downwards trend. Since
compared with a -2.1% fall in unit
Brisbane, has seen growth in housing
the initial cash rate hike on May
values. Melbourne also showed a
values flatten out to just 0.1% in
5, most housing markets around
smaller quarterly decline in units
June, while Adelaide remains the
the country have seen a sharper
relative to houses at -0.5% and
only capital still recording a monthly
reduction in the rate of growth.
-2.4% respectively.
“Considering inflation is likely
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peak rate of growth as trend rates eased across the remaining markets.
growth rate higher than 1.0% (1.3%). Growth in Perth’s housing values, which were temporarily showing a second wind as state borders reopened, are again losing steam with values up 0.4% in June.
to remain stubbornly high for some time, and interest rates are expected to rise substantially in response, it’s likely the rate of decline in housing values will C21 MARKET PULSE
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