Property market stabilises as values slowly rise in capital cities
Property prices may have reached their floor in July, with values holding firm and five of the eight capital cities recording a subtle increase in values, according to the latest data from CoreLogic.
The CoreLogic home value index results for July 2019 indicate that housing conditions are stabilising following improvements in credit availability and lower mortgage rates, with dwelling values flat over the month.
CoreLogic head of research Tim Lawless said dwelling values held firm over the month following a consistent trend towards smaller month-on-month declines through the first half of the year.
“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,” said Mr Lawless.
The only capital cities that saw a decline were Adelaide, Perth and Canberra. The best performing capital cities are Hobart and Melbourne, which both rose 0.1 per cent in the three months to July.
Mr Lawless said a number of factors have supported 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. All of which is creating a stronger selling position for vendors,” he said.
“The improved housing market conditions have lifted the annual rate of change to -6.4 per cent nationally, with the annual rate of decline across the combined capitals index easing from a recent low of -8.4 per cent to -7.3 per cent, while the combined regional markets are recording an annual rate of decline of -3.0 per cent.”
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.