Values Keep Rising

The growth of Australian property values continues with the latest figures showing an almost 8% increase in the past financial year.

According to CoreLogic that means values are up by about $58,000 in the past 12 months to $794,000.

On a quarterly basis, housing values are up by 1.8%, similar to results in the March quarter (1.9%) and December quarter (1.8%).

PropTrack says national home prices reached a new peak in June, marking 18 months of consecutive increases.

It uses a different methodology than CoreLogic and says house prices increased nationally by 0.15% to $854,000 in the month of June.

According to PropTack capital city markets were stronger, up 0.2% compared to regional areas which are up by just 0.02%.

It says the unit market continues to perform well with price growth of 0.32% across the combined capital city areas and 0.34% in regional areas during the month.

PropTrack senior economist, Eleanor Creagh, says national home prices have cycled through 18 consecutive months of growth to hit a fresh peak in June despite the pace of growth slowing as winter begins.

“Although the number of homes hitting the market this year has lifted, strong population growth, tight rental markets and home equity gains continue to bolster demand,” she says.

CoreLogic research director Tim Lawless says there is persistent growth despite an array of risks including high interest rates, cost of living pressures, affordability challenges and tight credit policy.

“The housing market resilience comes back to tight supply levels which are keeping upward pressure on values,” he says.