We have received the CoreLogic April 2023 Home Value Index Report, which contains valuable information about the current state of the property market. Despite the impact of high interest rates and inflation, housing values increased by 0.6% in April. This is mainly due to a persistent low supply in the market. The April Home Value Index (HVI) by CoreLogic provides essential insights for those closely monitoring property market trends and key insights from CoreLogic Oceanic Research Director Tim Lawless. This is what he has to say about the latest HVI data.

“We aren’t seeing any signs of heat coming out of the Perth housing market just yet, in fact the quarterly pace of growth, at 6.0%, is approaching the cyclical highs seen during the pandemic when interest rates were at rock bottom.

On the other hand, we are seeing the pace of gains slow across the Brisbane market, easing below the 1% mark to 0.9% in April for the first time in 12 months. Affordability pressures may be impacting the pace of growth across the city, following a nearly $300,000 increase in values since the onset of COVID in March 2020, the largest dollar value increase of any capital.

The shift towards stronger conditions across lower value markets can also be seen between the housing types, with growth in unit values outpacing house values over the past three months.

Hobart was the only city where houses recorded a larger gain than units over the past three months.”

Tim Lawless, CoreLogic’s research director.

Below are CoreLogic key takeaway points from the April HVI Report.

• Home prices increased by 0.6% in April, marking the 15th straight month of growth. Mid-sized capital cities like Perth, Adelaide, and Brisbane saw the most significant increases, with Perth leading at 2.0%, followed by Adelaide at 1.3%, and Brisbane at 0.9%.

• Cheaper housing markets are growing the most, with lower-priced units outperforming pricier homes in every city.

• Regional markets have grown slightly more than capital cities in the past few months.

• Home sales look to have moved through a cyclical peak in November last year. 

• In April, rental prices in the country increased by 0.8%. Most major cities saw a rise of over 2.0% in quarterly dwelling rents, with Perth leading at 3.9% growth in the last three months.

• Rental prices increased more than property values since November, boosting overall rental profits.

• In many cities, sellers have the upper hand due to a gap between what's available and what buyers want.

• Forecast for the market, considering the potential impact of prolonged high interest rates and inflation on housing.

CoreLogic estimates there are 76,265 properties for sale in capitals over the four weeks ending on April 28th, a 17.6% drop from the five-year average. April sales are up by 2.4%, highlighting the supply-demand gap favouring sellers. Median selling time in cities is now 27 days vs. 30.7 days decades ago, with less vendor discounting. Perth leads the way with an average of 10 days on the market, compared to ACT, Hobart, and Darwin, which have 40 days on the market.

To read the full report, click on the link below.

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