Home values ??in Australia fell for a third consecutive month in July, but several factors are preventing substantial declines, according to CoreLogic's latest market report.
The national value of dwellings fell 0.6% in July, somewhat slower than the 0.7% decline recorded the previous month. Among the capitals, Adelaide and Canberra managed to record price gains of 0.1% and 0.6%, respectively. Melbourne, on the other hand, reported the most significant drop at 1.2%.
On an annual basis, prices are still significantly higher than a year ago. Domestic prices remain 7.1% higher than last year.
While Sydney saw a 0.9% drop during the month, values ??in the New South Wales capital are 12.1% higher than they were previously in the same month last year.
Tim Lawless, head of research at CoreLogic, said house prices appear to remain resilient amid the COVID-19 outbreak. In fact, the impact of the epidemic on home values ??appears to be under control, with the national index only dropping 1.6% since the recent peak in April.
"Historically low interest rates, government support, and loan repayment holidays for distressed borrowers have helped protect the housing market from a deeper downturn," t -he declares.
These factors also helped to keep the advertised supply tight, which in turn kept prices from falling further.
"In addition, the increase in demand due to specific housing incentives from federal and state governments, especially for first-time buyers, has become more significant," he said. declared.
The table below shows the price movements in the capitals in July:
However, challenges remain for the foreseeable future, given the expected moderation of several support regimes. These factors will further test the resilience of the market. Will this lead to an increase in distressed properties on the market? Will this lead to a significant reduction in home values?
"The extent to which this causes further downward pressure on house prices depends on how the Australian economy is moving at that time. the housing market, "Lawless said.
If there is a market well positioned to deal with the effects of the epidemic, it is the regional areas. CoreLogic data shows housing values ??in regional markets remain unchanged.
This is consistent with a recent study by PRD Real Estate, which shows that regional markets, on average, saw a 3.4% growth in median prices in the first six months of 2020, with Tasmania leading the gains at 9.8%. Of all the states, only Western Australia saw a decline, with median prices falling 0.5%.
"In the face of COVID-19, regional markets were slightly more isolated from economic shocks as they depended less on international trade and a more affordable housing market," the report says.
Top suburbs:
coorparoo
,
toowong
,
Harris park
,
Glendenning
,
mt gravatt
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