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December saw a strong close for home values, as CoreLogic’s latest data has revealed a 1.1 per cent rise in national dwelling values last month.
Over the last quarter, values were up by 4 per cent, which marked the end of 2019 on a positive note.
As a result, it was the fastest rate of national dwelling value growth over three months since November 2009.
When it came to the capital cities, Darwin was the only region to see values fall in December, down by half a per cent.
“Although the monthly capital gains trend remains fast-paced, the 1.1 per cent rise in December was softer relative to the 1.7 per cent gain in November and the 1.2 per cent rise in October. This would suggest that the pace of capital gains may have been dampened by higher advertised stock levels or worsening affordability pressures through early summer,” CoreLogic head of research Tim Lawless said.
Across 2019, dwelling values across the country were 2.3 per cent higher, as five of the eight capital cities, and five of the seven rest-of-state regions, saw the year out in positive growth territory.
“The positive year-end results mask what has been a year of two distinct halves — we saw capital city dwelling values fall by 3.8 per cent over the first six months of 2019 and then rebound by 7.0 per cent over the second half of the year,” Mr Lawless said.
“The housing value rebound was spurred on by lower mortgage rates, a relaxation in borrower serviceability assessments, improved housing affordability and renewed certainty around property taxation policies post the federal election. Lower advertised stock levels persisted, providing additional upwards pressure on prices amid rising buyer activity.”
Although the second half of 2019 saw a return in ballooning property values, most regions across Australia were below earlier record highs.
“A nominal recovery in housing values implies home owners are becoming wealthier, which may also help to support household spending. However, the flip side is that housing affordability is set to deteriorate even further as dwelling values outpace growth in household incomes, signalling a setback for those saving for a deposit,” he said.
The only regions where housing values are currently tracking at new record highs are Hobart, Canberra and regional Tasmania.
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