House Prices 

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Australia’s residential market is moving through a soft landing, with the pace of decline in home values easing in March. </strong></p><p>Australian home values have held firm, with strength in regional areas offsetting falls across capital cities, according to Corelogic’s latest Hedonic Home Value Index.</p><p>Sydney’s market recorded the sharpest fall, with an annual 2.1 per cent decline in the house prices in the year to March. Month-on-month Sydney and Melbourne dropped only 0.3 per cent in March, with Brisbane (+0.1 per cent), Perth (+0.3 per cent) and Darwin (+1.0 per cent) recording increases after falls during February.</p><p>Corelogic head of research Tim Lawless said that softening in the Australian housing market in March was largely due to weaker conditions in Sydney.</p><p><strong>Related reading:</strong> <a href="https://theurbandeveloper.com/articles/cost-of-residential-land-in-australia-hits-record-high">Cost of Residential Land in Australia Hits Record High</a></p><p>“However, most other capitals are also recording subtle falls. Dwelling values were steady over the quarter in Brisbane and have continued their strong run of growth across Hobart, up +3.4 per cent,” Lawless said.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/410da73a-9761-450b-bb4f-fc47760a5635.png" width="1365"/></picture><div><span style="float:right;opacity:0.8">Source: Corelogic</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Prices in regional areas rose 0.4 per cent last month where prices across the nation’s capitals fell 0.2 per cent overall.</p><p>The unit sector across Sydney and Melbourne has shown strong conditions relative to detached housing. </p><p>The fall in home values was slighter than expected, with the Australian housing marketing showing every sign of recording a “soft landing” after prices peaked in September 2017.</p><p><strong>Related reading:</strong> <a href="https://theurbandeveloper.com/articles/battle-of-the-states-which-australian-city-will-be-on-top-in-2018">Battle of the States: Which Australian City Will be on Top in 2018?</a></p><h2><strong>Return of investors?</strong> </h2><p>Lawless said that lenders have overshot APRA macroprudential benchmarks, with the banks looking to regain some of their lost market share. </p><p>“One factor supporting this deceleration in value declines could be an improvement in credit availability for investors and interest only borrowers</p><p>“Credit aggregates from the Reserve Bank show growth in credit for investment housing increased at an annualised pace of just 2.3 per cent over the three months to February; well below the APRA benchmark speed limit of 10 per cent.” </p><p>Despite the potential improvement in credit availability for investors, rental yields remain low and credit policy is likely to be firmly under the spotlight following the banking Royal Commission.</p><p>“Even though the housing market is close to finding a floor, the prospects for a rebound in capital gains are unlikely.”</p><h2><strong>RBA cash rate steady </strong></h2></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/27f55c59-99ab-4461-9cea-5bd38c82bff5.png" width="1541"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The Reserve Bank has maintained the cash rate at 1.5 per cent for the 19th consecutive month. The decision at Tuesday’s RBA board meeting was widely expected by economists. </p><p>RBA Governor Philip Lowe said that the low level of interest rates is continuing to support the Australian economy.</p><p>Lawless said that the housing market conditions are likely moving further down the RBA’s list of priorities.</p><p>“The controlled slowdown in the housing sector is likely to be a welcome outcome from the RBA, who are more likely to be focussing on labour markets, where the rate of unemployment, although lower than a year ago, crept higher, from 5.4 per cent to 5.5 per cent in February.</p><p>“Despite the hold decision from the RBA, mortgage rates remain close to historic lows, particularly for owner occupiers who are paying down both their interest and principal.”  </p><p>While the RBA has flagged the next move in interest rates will be a rise, it remains likely that any hike to the cash rate is well in the future.</p><p></p></div></div></div></div></div>

Sydney’s housing market is close to “finding a floor”, according to the property researcher Corelogic.

The winds of change have hit property prices as the first major capital city in Australia records a drop in monthly values and experts predict there will be more cities to fall.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>The winds of change appear to be sweeping across property prices as the first capital city in Australia records a drop in monthly values—and experts predict there will be more cities to fall. </p><p>Dwelling prices in Perth fell 0.1 per cent, the city’s first drop in values since June 2020, according to Corelogic’s monthly hedonic home value index.</p><p>Brisbane, meanwhile, became the hottest property market in the country with growth at its highest rate in 18 years.</p><p></p><p>The other capital cities recorded gains, adding to what has been a unprecedented year for the property market with prices up 25.35 per cent, while <a href="https://www.theurbandeveloper.com/articles/australian-house-prices-increase-2000-per-week">Darwin has recorded mixed results</a> in the past few months.</p><p></p><p>However, there were warnings from experts that storm clouds were gathering.</p><p><strong>Australian house prices: October</strong></p><p></p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>Location</th><th>Month</th><th>Quarter</th><th>Annual</th><th>Median Value</th></tr></thead><tbody><tr><th>Sydney</th><th>1.50%</th><th>5.24%</th><th>25.23%</th><th>$1,071,709</th></tr><tr><th>Melbourne</th><th>0.99%</th><th>3.01%</th><th>16.37%</th><th>$780,303</th></tr><tr><th>Brisbane</th><th>2.54%</th><th>6.50%</th><th>22.30%</th><th>$642,097</th></tr><tr><th>Perth</th><th>-0.11%</th><th>0.65%</th><th>16.37%</th><th>$526,625</th></tr><tr><th>Adelaide </th><th>2.00%</th><th>5.86%</th><th>20.07%</th><th>$543,265</th></tr><tr><th>Hobart</th><th>2.00%</th><th>6.66%</th><th>28.06%</th><th>$526,625</th></tr><tr><th>Darwin</th><th>0.42%</th><th>0.41%</th><th>19.28%</th><th>$490,236</th></tr><tr><th>Canberra</th><th>1.94%</th><th>6.18%</th><th>25.52%</th><th>$864,909</th></tr><tr><th>Capitals</th><th>1.38%</th><th>4.41%</th><th>20.82%</th><th>$771,264</th></tr><tr><th>Regional</th><th>1.87%</th><th>5.28%</th><th>24.29%</th><th>$514,308</th></tr><tr><th>National</th><th>1.49%</th><th>4.60%</th><th>21.58%</th><th>$686,339</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^Source: Corelogic hedonic home value index for October 2021</sub></sup></p><p>AMP Capital chief economist Shane Oliver said they had revised their outlook to a 5 per cent increase in 2022 and a 5 to 10 per cent decline in 2023.</p><p></p><p>“Storm clouds are starting to gather for the property boom and we expect a further slowing in price gains ahead of falls from later next year,” Oliver said.</p><p></p><p>“Listings are on the rise, reflecting the end of lockdowns and high prices, and poor affordability is pricing more and more borrowers out of the market.</p><p></p><p>“A rotation in consumer spending back towards services as reopening occurs may reduce housing demand.</p><p></p><p>“Higher interest rate serviceability buffers and likely further macroprudential controls will likely slow borrowing, fixed mortgage rates are on the rise and the RBA is expected to start raising interest from late next year.”</p><p><strong>House and apartment price changes</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><table><thead><tr><th>City</th><th>House monthly </th><th>House quarter</th><th>Unit monthly</th><th>Unit quarter</th></tr></thead><tbody><tr><th>Sydney</th><th>1.6%</th><th>5.7%</th><th>1.2%</th><th>4,1%</th></tr><tr><th>Melbourne</th><th>1.0%</th><th>7.1%</th><th>1.0%</th><th>1.7%</th></tr><tr><th>Brisbane</th><th>2.8%</th><th>7.1%</th><th>1.3%</th><th>3.3%</th></tr><tr><th>Perth</th><th>-0.1%</th><th>0.7%</th><th>0.2%</th><th>0.5%</th></tr><tr><th>Adelaide</th><th>2.2%</th><th>6.5%</th><th>1.0%</th><th>1.8%</th></tr><tr><th>Hobart</th><th>2.0%</th><th>6.4%</th><th>2.0%</th><th>7.7%</th></tr><tr><th>Darwin</th><th>-0.2%</th><th>-1.2%</th><th>1.6%</th><th>3.6%</th></tr><tr><th>Canberra</th><th>1.9%</th><th>6.4%</th><th>1.9%</th><th>5.2%</th></tr><tr><th>Capitals</th><th>1.5%</th><th>4.8%</th><th>1.1%</th><th>3.1%</th></tr><tr><th>Regional</th><th>1.9%</th><th>5.3%</th><th>1.6%</th><th>5.4%</th></tr><tr><th>National</th><th>1.6%</th><th>4.9%</th><th>1.2%</th><th>3.5%</th></tr></tbody></table></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sup><sub>^Source: Corelogic hedonic home value index for October 2021<br></sub></sup></p><p></p><p>Corelogic research director Tim Lawless said slowing growth conditions in October were a factor of worsening housing affordability, rising supply levels and less stimulus.</p><p></p><p>“Housing prices continue to outpace wages by a ratio of about 12 to 1. This is one of the reasons first home buyers are becoming a progressively smaller component of housing demand,” Lawless said.</p><p></p><p>“New listings have surged by 47 per cent since the recent low in September and housing-focused stimulus such as HomeBuilder and stamp duty concessions have now expired. </p><p></p><p>“Combining these factors with the subtle tightening of credit assessments set for November 1 and it’s highly likely the housing market will continue to gradually lose momentum.”</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Related: <a href="https://www.theurbandeveloper.com/articles/melbourne-housing-market-update">Melbourne Housing Insights</a></p><p>Related:<a href="https://www.theurbandeveloper.com/articles/sydney-housing-market-update"> Sydney Housing Market Insights</a></p><p>Related: <a href="https://www.theurbandeveloper.com/articles/brisbane-housing-market-update">Brisbane Housing Market Insights</a></p></div></div></div></div></div>

The winds of change have hit property prices as the first major capital city in Australia records a drop in monthly values...

HEDONIC HOME VALUE INDEX