Australia’s housing markets are starting the new year on a strong footing after building momentum through the end of 2020, new figures show. CoreLogic’s national home value index rose 1.0 per cent in December, the third consecutive monthly rise following a 2.1 per cent drop between April and September. Perhaps unsurprisingly, given the year that 2020 was, a renewed interest in life away from the cities resulted in a boost to values in regional areas.
Nationally, home values finished the year 3.0 per cent higher. Regional values rose by 6.9 per cent while capital city values were up 2.0 per cent over the year. Around the country, every capital recorded positive growth in December. Brisbane, Adelaide and Perth values all rose by 1.1 per cent, while values lifted 0.7 per cent in Sydney and Hobart respectively, 1.0 per cent in Melbourne, 2.3 per cent in Darwin and 0.6 per cent in Canberra.
CoreLogic research director Tim Lawless said the year was characterised by just a mild dip in values, but unprecedented volatility in the transaction space. “The number of residential property sales plummeted by 40 per cent through March and April but finished the year with almost 8 per cent more sales relative to a year ago as buyer numbers surged through the second half of the year. Despite the volatility, housing values showed remarkable resilience, falling by only 2.1 per cent before rebounding with strength throughout the final quarter of 2020.”
Lawless suggested that, in retrospect, the rebound in housing market activity and dwelling values is unsurprising given the rapid and substantial monetary and fiscal response from the Government and policy makers. “Record low interest rates played a key role in supporting housing market activity, along with a spectacular rise in consumer confidence as COVID-related restrictions were lifted and forecasts for economic conditions turned out to be overly pessimistic.”
Source: EPS Property Search