The CoreLogic June Home Value Index results reported a 0.5% rise in capital city dwelling values over the month with five capitals recording a fall in dwelling values while Sydney, Melbourne and Hobart values show another substantial rise.
Higher dwelling values across Australia’s two largest capital cities continued to push the CoreLogic Hedonic Home Value Index to new record highs, with dwelling values across the combined capital cities rising by 0.5% in June to be 8.3% higher over the past twelve months.
The June results continued to show a rebound in housing market conditions after CoreLogic reported weaker results for the final quarter of 2015 when the combined capitals’ index was down 1.4%.
Importantly, the pace of capital gains in June was substantially lower than the April and May results when CoreLogic reported a 1.7%, and 1.6% month-on-month lift in capital city dwelling values.
The monthly growth rate reduction is likely to be very much welcomed by state and federal government policy makers and regulators who may be concerned about a sustained rebound in capital gains.
The combined capitals’ headline result was driven by a strong 1.2% rise in Sydney dwelling values, and a 0.8% gain across
Hobart values also showed strong conditions with dwelling values moving 1.8% higher over the month.
Although the headline results are positive, five of Australia’s eight capital cities recorded a decline in dwelling values in June.
Monthly declines of more than 1% were recorded in Darwin (-1.6%), Adelaide (-1.3%) and Canberra (-1.1%), while the falls in the Brisbane market (-0.1%) and Perth (-0.8%) were less severe.
Darwin dwelling values are down by 0.2% over the first half of 2016 and have fallen by a cumulative 6.9% since the recent peak in May 2014.
The latest update on overall housing market performance provides a timely view on dwelling value appreciation over the 2015/16 financial year.
Capital city dwelling values have increased by 8.3% over the financial year which is lower than what was recorded over the previous two financial years when capital city dwelling values were 9.8% higher over 2014/15 and 10.1% higher in 2013/14.
Thanks to CoreLogic RP Data