CoreLogic’s national Home Value Index (HVI) rose 0.7% in July marking a fifth consecutive month of housing value recovery.

We all know that making informed decisions in the always-changing real estate market requires knowledgeable and adaptable information. As we go through this article recently published by Corelogic’s news & research campaign, we will analyze significant trends, understand complex market dynamics, and identify feasible solutions.

Beginning with the national housing value index (HVI) which is up to 4.1% since February, following a -9.1% decline from April 2022.

Nationally, home values remain -5.3% below the peak, with only Perth, Adelaide, and Regional South Australia recording new cyclical highs.   

Perth, in particular, recorded a substantial pull back in house values across most suburbs from 2014 to December 2021.  Now, demand and low supply is pushing these prices back up however some suburbs are still below the 2014 highs.

Suburbs that have strong fundamentals for demand ie good schools, close to train and main arterial roads and close to the CBD did not pull back as much and so now are showing these cyclical highs.

Here is a Corelogic graph showing the movement of prices across the states on a monthly basis up to July, a quarterly, and annual basis.   Looking at these graphs gives some indication of what parts of Australia are showing growth or pull back on these time frames…..

This data is what serious investors look at for opportunities and home owners if they are looking to capitalize on growth especially if they are mobile for jobs……

However with increasing interest rates, growth has lost some of its momentum, slowing from 1.2% in May.

The slowdown in value growth is mainly due to easing gains in the upper quartile of the market.

 The lower quartile and broad middle of the market remained resilient in July, following a smaller but more consistent rate of growth over previous months.

This resilience aligns with housing finance data showing a stronger bounce back in lending to first-home buyers and investors.

Regional values continued to lag behind the capitals, with the combined regionals index rising 0.2% in July compared to a 0.8% increase across the combined capitals index.

The largest rise in regional housing values has been in the Gold Coast, the Southeast region of Tasmania, and the Newcastle/Lake Macquarie region.

With the rapid increase in interest rates, mortgage pain and fear is beginning to bite with an increase of listings in most capital cities resulting in an national increase of 3.9% In the last 4 weeks to the end of July 2023.

Many are choosing to take the opportunity of the current low supply and high demand for housing across Australia as a good time to sell – better now than later when there maybe less buyers due to financial constraints.

Overall, the capital city advertised stock levels remain low compared to historical levels, but prices are holding their own, suggesting demand is keeping up with the increased flow of new listings.