National dwelling values stabilised in July, with five of the eight capitals recording a slight rise in value. The latest CoreLogic Hedonic Home Value Index results, released this week, show that nationally, total home values remained unchanged from the previous month. Values in the combined capitals rose by 0.1 per cent, while regional values fell 0.2 per cent.
Sydney, Melbourne and Brisbane all reported an improvement of 0.2 per cent. Rises were also reported in Hobart (up 0.3 per cent) and Darwin (0.4 per cent), while values fell in Adelaide and Canberra (both down 0.3 per cent) and Perth (0.5 per cent). The lift in Brisbane values was the first monthly rise since November last year.
CoreLogic head of research Tim Lawless remarked that the national index may have found a floor in July, with values holding firm over the month following a consistent trend towards smaller month-on-month declines through the first half of the year. Since peaking, the national index is down 8.3 per cent.
“The stabilisation in housing values is becoming more broadly-based, with five of the eight capital cities recording a subtle rise in values over the month, while the regional areas of South Australia, Tasmania and Northern Territory also recorded a lift in housing values in July.”
According to Lawless, several factors are supporting the turnaround in housing conditions, however lower mortgage rates, improved access to credit, a boost in housing market confidence post the federal election and recent tax cuts are likely the primary drivers. Other factors include improvements in housing affordability and a reduction in advertised supply levels.