Brisbane and Adelaide continued to lead other capitals in price growth in January.
CoreLogic's latest Hedonic Home Value Index report showed that during the month of January, the two were the only state capitals to post monthly gains of more than 2%.
CoreLogic Research Director Tim Lawless said there are several factors that separate the two cities from their peers, allowing them to consistently report higher growth rates in previous months .
"In Brisbane and Adelaide, housing affordability is less of a challenge, advertised inventory levels remain remarkably low and demographic trends continue to support housing demand, particularly in South East Queensland “said Mr. Lawless.
Highest annual growth achieved
Five of the eight capitals posted higher growth rates in January than in December, including Melbourne.
The Victorian capital recovered from the monthly decline it had seen in December, with its median price rising 0.2% in January.
Mr Lawless said the housing stock is generally “low traded” in January and tracking this trend would indicate how 2022 will shape.
"Early indications are that housing markets are starting 2022 with a similar trend to what we saw at the end of last year – values ??are still rising broadly, but not nearly as much faster than early 2021," he said.
Mr Lawless said the easing in the booming property market was influenced by the dwindling government stimulus, rising concerns over affordability, rising housing prices fixed rates and the surge in new listings in the last quarter of 2021.
On a yearly basis, national home values ??hit a new cyclical high with a 22.4% gain, the highest since June 1989.
This means that a typical Australian house is now worth about $131,000 more than a year ago.
Five state capitals recorded annual gains of more than 20%, with Brisbane posting the largest median growth rate of 29.2%.
Regional Markets Still Trump State Capitals
Outside the capitals, regional markets remained superior in terms of price growth.
The combined regional figures showed 1.8% monthly and 26.1% annual gains in median prices, outpacing the 0.8% monthly and 21.3% annual growth in the combined capitals.
Mr. Lawless said regional markets in Queensland and South Australia led the growth; however, favorable conditions were apparent in most regional areas.
“Regional Australia's outperformance against capitals has been a feature of much of this cycle to date, driven by a combination of higher demand and low levels of demand. 39;offer announced,” he said.
Million Dollar Real Estate Markets
Three of the eight capitals now have a median home value above $1 million.
Melbourne's median house price hit $1m for the first time in January, while Canberra held its median house price at $1m for the second month consecutive.
Meanwhile, homes in Sydney now have a median price of around $1.39 million.
However, Lawless noted the slowing conditions in Sydney and Melbourne, which could potentially impact the direction of prices in those cities over the coming months.
"The slowing trend in Sydney and Melbourne can at least in part be explained by a higher barrier to deposits caused by rising house prices alongside the growth of low incomes, as well as by higher advertised inventory levels and weaker demographic trends,” he said.
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Photo by @stevenwei on Unsplash.
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