Combined house prices in capitals remained on an uptrend in March, but uncertainties resulting from the COVID-19 epidemic dampened the supposed gains, according to the latest CoreLogic analysis.
While home values ??continued to increase 0.7%, the collapse in consumer confidence and social distancing policies moderated gains in the second half of the month said Tim Lawless, director of research at CoreLogic.
"The March national reading appeared to be the smallest monthly increase since the market lifted in July of last year," he said.
Read also: How does COVID-19 change market sentiment?
On a monthly basis, Darwin reported the largest increase in house prices at 2%, bringing its median value to $ 392,348. Sydney followed with a 1.1% gain at $ 882,849.
In the past three months, however, Sydney recorded the largest price growth, at 3.9%. Since last year, the value of homes in Sydney has increased by 13%.
The infographic below shows the monthly, quarterly and annual variations in the median value of housing in capitals:
Lawless said that recent market trends have become "less relevant" given the uncertainties due to the coronavirus epidemic, which is likely to influence the household confidence.
"The housing market will not be immune to a decline in sentiment and a weaker economy, but the magnitude of the impact on home values ??remains very uncertain, "said Lawless.
Lawless said trends will depend on the time it takes to contain the virus and the introduction of additional constraints on business or personal activities. ]
Nonetheless, sales are expected to drop dramatically in the coming months due to low consumer confidence, the increase in unemployment and tighter lending rules.
"Restrictions on open houses and on-site auctions will worsen the slowdown in buyer activity, as would all future service policy announcements peripherals such as building and pest inspections, transportation and furniture referrals, "said Lawless.
However, Lawless believes that property values ??will be more isolated than sales activity, given the temporary nature of the current crisis and government efforts to provide stimulants.
"The magnitude of any decline in the value of housing is impossible to understand without first understanding the duration of this health and economic crisis. No doubt, more it will take time to contain the virus and bring economic operations back to normal, the higher the risk of falling housing values, "he said.
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