The Australian housing market is entering the new decade of a positive end for 2019, with housing values ??growing 1.1% per month and 4% per quarter, according to the latest CoreLogic figures.
During the last quarter of 2019, the housing market recorded its fastest price growth rate over any three-month period since November 2009.
However, if we consider the monthly increase in prices, the result is lower compared to the growth recorded in November and October.
"This would suggest that the pace of capital gains may have been slowed by higher reported inventory levels or worsening pressures on affordability in the early summer," said Tim. Lawless, director of research CoreLogic.
On a yearly basis, the value of dwellings increased by 2.3%, with five of the eight capitals and five of the seven regions of the "rest of the state" having recorded gains.
Sydney and Melbourne recorded the largest gains, both recording 5.3% growth in home values ??over the year. On the other hand, Darwin experienced the largest price drop to 9.7%.
The table below shows the development of the value of housing in each capital.
Lawless said the positive year-end results mask what has been a year of two separate halves.
"We saw the value of housing in capitals fall by 3.8% in the first six months of 2019, then rebounded by 7.0% in the second half of the year", said he declared.
The rebound in the second half is due to several factors, including lower mortgage rates, softening assessments of borrowers' ease of service, improved affordability and the renewed certainty regarding property taxation policies after federal elections.
Lawless said that the announced drop in housing supply could give a boost to prices as buyers' activity remains strong.
In the regions, the story is a little different. Despite the strong rebound in the second half of 2019, property values ??in most regions are still below their previous record levels.
Lawless said that if the current quarterly growth rate persisted until 2020, the national housing market would experience a "nominal recovery" in March as house values ??hit new records.
"A nominal recovery in housing values ??means that homeowners are getting richer, which can also help support household spending. However, the flip side is that housing affordability should still be deteriorate as housing values ??outpace household income growth, signaling a setback for those who save for a deposit, "he said.
Main suburbs:
bligh park
,
fig wood
,
mt lawley
,
Glendenning
,
albion
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