P R O P E R T Y M A R K E T U P DAT E
CORELOGIC HOME VALUE INDEX RECORDS FIRST NATIONAL FALL SINCE SEPTEMBER 2020, AS DECLINES ACCELERATE ACROSS SYDNEY AND MELBOURNE IN MAY
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
Housing markets lost more steam in May as a combination of higher interest rates, rising inventory levels and lower sentiment dampened conditions. CoreLogic’s Home Value Index (HVI) showed Sydney (-1.0%) and Melbourne (-0.7%) dwelling values continued to record the most significant month-on-month falls, while Canberra (-0.1%) recorded its first monthly decline since July 2019. Although housing values continued
-0.8%, with housing values now
momentum in most markets.
to rise across the remaining capitals,
9.8% higher compared to the
Perth and Adelaide were the
the growth was not enough to
pre-COVID level.
exceptions, where the quarterly
offset the depreciation in Sydney, Melbourne and Canberra, which pushed the combined capitals index -0.3% lower over the month.
Canberra, Australia’s second most expensive property market behind Sydney, has experienced
growth trend lifted in May, although both regions remain below the peak quarterly rate of growth.
nearly three years of consistent
CoreLogic’s Research Director Tim
Sydney has been recording
positive growth and although
Lawless said despite the 0.5% rise
progressively larger monthly value
dwelling values increased 2.2% in
in housing values across Australia’s
declines since February, while
the three months to May, softer
combined regional areas, it was not
Melbourne has fallen across four
house values and affordability
enough to keep the national index in
of the past six months.
constraints are likely to have had an
positive monthly territory, with the
impact. Accounting for the marginal
national HVI down -0.1% in May, the
decline evident in May, Canberra
first monthly decline in the national
housing values remain 37.9% higher
index since September 2020.
Since peaking in January, Sydney housing values are down -1.5%, but remain 22.7% above preCOVID levels. Comparatively,
vs. pre-pandemic levels.
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Melbourne, which experienced a
Outside of Sydney, Melbourne and
softer growth phase, has recorded
Canberra, growth trends remained
a smaller peak-to-date decline of
positive in May, albeit with less C21 MARKET PULSE
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