House Prices Up 22% Last Year

North Manly grany flat front

House Prices Rise By 22% Over Year

Home values rose by over a fifth in 2021, despite a slowing in growth over the latter half of the year.

Corelogic’s monthly Hedonic Home Value Index has revealed that values nationally were 1.0 per cent higher in December, down from a 1.3 per cent rise in November.

Momentum has slowed quite sharply in Melbourne and Sydney dwelling markets, with both cities recording the softest monthly reading since October 2020.

“A surge in freshly advertised listings through December has been a key factor in taking some heat out of the Melbourne and Sydney housing markets, along with some demand headwinds caused by significant affordability constraints and negative interstate migration”, Tim Lawless said.

Regional values have seen some renewed momentum with a monthly rise of 2.2 per cent, the highest in nine months. Regional Queensland was the clear standout across the rest-of-state markets in December, with housing values up 2.4 per cent, however over the year the strongest regional markets have been in New South Wales (29.8 per cent) and Tasmania (29.5 per cent).

The most popular regional markets have seen housing values rise more than 30 per cent over the calendar year, with the Southern Highlands and Shoalhaven recording the highest annual rise in home values at 37.7 per cent, followed by Queensland’s Sunshine Coast at 33.7 per cent.

With national housing values recording an annual rise of 22.1 per cent compared with a 9.4 per cent rise in rents, rental yields have decreased as a natural consequence. Gross rental yields fell to a new record low across Australia, reaching 3.2 per cent in December. The lowest yields, by some margin, remain in Sydney (2.4 per cent) and Melbourne (2.7 per cent), however, with the exception of Perth and Darwin, every capital city is recording record low yields.

 

Source: EPS Property Search