Property values fell slightly across the five major capital cities during June with markets in Canberra, Darwin and Hobart each recording a small increase. Core Logic reported a second consecutive month of falls with the national Home Value Index down 0.7% in June. Overall market activity showed improvement with a 21.5% surge in sales activity through May. Core Logic estimates that home sales in June were up a further 29.5%.
CoreLogic’s head of research, Tim Lawless, said “Downwards pressure on home values has remained mild to-date, with capital city dwelling values falling a cumulative 1.3% over the past two months. A variety of factors helped to protect home values from more significant declines, including persistently low advertised stock levels and significant government stimulus. Additionally, low-interest rates and forbearance policies from lenders have helped to keep urgent sales off the market, providing further insulation to housing values.”
Regional markets remain resilient in the current environment with a ‘tree-change’ trend emerging as city dwellers snap up acreage close to the city centre.
Meanwhile, the Federal Government’s Homebuilder program and the second intake of the First Home Loan Deposit Scheme are having a positive impact on the market.
Download and read the full Market Essentials – July 2020 Report.