According to CoreLogic\u2019s latest Home Value Index, national dwelling values rose by 0.6 per cent in July, maintaining the same growth rate seen in the previous two months.<\/p>\n
The positive trend has been supported by persistently low inventory levels, with national listings tracking approximately 19 per cent below the previous five-year average for this time of year.<\/p>\n
Darwin led the capital cities with a solid 2.2 per cent rise in July, followed by Perth at 0.9 per cent.\u00a0<\/p>\n
Brisbane and Adelaide both recorded 0.7 per cent growth, while Sydney saw a 0.6 per cent increase.\u00a0<\/p>\n
Melbourne, Canberra, and Hobart experienced more modest gains at 0.4 per cent, 0.5 per cent, and 0.1 per cent respectively.<\/p>\n
CoreLogic Research Director, Tim Lawless, said the housing market has found a balance between opposing forces.<\/p>\n
\u201cAt the national level, the pace of growth in housing values is no longer accelerating,\u201d Mr Lawless said.\u00a0<\/p>\n
\u201cRather, we have seen growth rates holding a little above half a percent from month to month since May as the opposing influence of low supply, falling interest rates and rising confidence run up against affordability constraints and lingering uncertainty.\u201d<\/p>\n
The quarterly growth rate has shown a clear upswing, with national values rising 1.8 per cent over the three months ending July \u2013 the strongest outcome since June last year.<\/p>\n
House values are once again outpacing the unit sector, with national house values rising 1.9 per cent over the past three months compared to 1.4 per cent for units.\u00a0<\/p>\n
This has pushed the difference between the national median house and unit value to a record high of 32.3 per cent, or approximately $223,000.<\/p>\n
Mr Lawless said this trend seems counterintuitive given affordability constraints and limited multi-unit housing supply.<\/p>\n
\u201cClearly, demand preferences are still weighted towards detached housing options despite the substantially lower price points available across the unit sector,\u201d he said.<\/p>\n
The rental market is also showing signs of reacceleration, with national rents up 1.1 per cent over the three months ending July on a seasonally adjusted basis.\u00a0<\/p>\n
Unit rents have shown a stronger trend, rising 1.3 per cent over the past three months.<\/p>\n
This reacceleration in rental growth presents challenges for renters who are already facing significant financial pressure.<\/p>\n
\u201cThe reacceleration in rental growth is clearly bad news for renters, where the median income household would already need around a third of their pre-tax income to pay rent,\u201d Mr Lawless said.\u00a0<\/p>\n
\u201cRenting households have historically skewed to younger, lower-income cohorts, so no doubt the sting of high rents is having an even more acute impact on household budgets.\u201d<\/p>\n
The outlook for housing values remains positive, with expectations of continued modest rises through the rest of the year.\u00a0<\/p>\n
This optimism is supported by the prospect of lower interest rates, improving sentiment, and short housing supply.<\/p>\n
However, housing affordability remains the most significant barrier to a substantial rise in housing prices, with the national dwelling value to household income ratio at 7.9, just shy of record highs.<\/p>\n
Mr Lawless said lower interest rates would have broader impacts beyond just improving loan serviceability.<\/p>\n
\u201cLower interest rates go well beyond providing a lift to home loan serviceability and borrowing capacity,\u201d he said.\u00a0<\/p>\n
\u201cWe expect to see a further rise in consumer sentiment as cost-of-living pressures are contained and the cash rate moves lower.\u00a0<\/p>\n
\u201cHistorically, consumer sentiment and housing activity have shown a close relationship.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"According to CoreLogic\u2019s latest Home Value Index, national dwelling values rose by 0.6 per cent in July, maintaining…\n","protected":false},"author":2,"featured_media":42097,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,63,99,171],"class_list":{"0":"post-42096","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-markets"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/42096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=42096"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/42096\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/42097"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=42096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=42096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=42096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}