Latest news with #Cotality
Sydney Morning Herald
11 hours ago
- Business
- Sydney Morning Herald
Property market records one of the quickest downturns ever
The latest property market downturn has become one of the shortest and shallowest on record, ending just three months after it started. Dwelling values took a hit between November 2024 and January 2025, falling 0.4 per cent nationally, latest data from Cotality (formerly CoreLogic) shows, after a series of interest rate hikes and cost-of-living pressures weighed on buyers' hip pockets. But in February, the month of the first interest rate cut in more than two years, the market started to turn around. The Reserve Bank cut the cash rate in February and May, to have it now sitting at 3.85 per cent. Cotality's Home Value Index for May showed dwelling values have jumped 1.7 per cent over the first five months of the year. Values in every capital city rose in May, by at least 0.4 per cent. Sydney values rose 0.5 per cent in May, Melbourne was up 0.4 per cent, Brisbane 0.6 per cent and Perth 0.7 per cent. Cotality research director Tim Lawless said the latest slowdown was more like a levelling-out of values, rather than an actual downturn, and was a lot less steep than the short downturns of 2020 and 2015. Dwelling values fell 1.8 per cent between April and June 2020 (the start of the COVID-19 pandemic), before skyrocketing on the back of cuts to the cash rate that ultimately reached rock bottom at 0.1 per cent. A similar, quick market turnaround also happened in 2015, when the Australian Prudential and Regulation Authority tightened lending criteria, particularly for property investors. Values fell 1.4 per cent in the December 2015 quarter. 'It really shows how much access to credit, or the ability to borrow money from the banks, can affect housing values,' Lawless said.
The Age
11 hours ago
- Business
- The Age
Property market records one of the quickest downturns ever
The latest property market downturn has become one of the shortest and shallowest on record, ending just three months after it started. Dwelling values took a hit between November 2024 and January 2025, falling 0.4 per cent nationally, latest data from Cotality (formerly CoreLogic) shows, after a series of interest rate hikes and cost-of-living pressures weighed on buyers' hip pockets. But in February, the month of the first interest rate cut in more than two years, the market started to turn around. The Reserve Bank cut the cash rate in February and May, to have it now sitting at 3.85 per cent. Cotality's Home Value Index for May showed dwelling values have jumped 1.7 per cent over the first five months of the year. Values in every capital city rose in May, by at least 0.4 per cent. Sydney values rose 0.5 per cent in May, Melbourne was up 0.4 per cent, Brisbane 0.6 per cent and Perth 0.7 per cent. Cotality research director Tim Lawless said the latest slowdown was more like a levelling-out of values, rather than an actual downturn, and was a lot less steep than the short downturns of 2020 and 2015. Dwelling values fell 1.8 per cent between April and June 2020 (the start of the COVID-19 pandemic), before skyrocketing on the back of cuts to the cash rate that ultimately reached rock bottom at 0.1 per cent. A similar, quick market turnaround also happened in 2015, when the Australian Prudential and Regulation Authority tightened lending criteria, particularly for property investors. Values fell 1.4 per cent in the December 2015 quarter. 'It really shows how much access to credit, or the ability to borrow money from the banks, can affect housing values,' Lawless said.
ABC News
a day ago
- Business
- ABC News
Rate cuts fueling house price rises
Australians are being forced to fork out more for a home with the median price of a house across the capital cities climbing further above the one million dollar mark. The latest data from Cotality - formerly known as CoreLogic - shows all the capitals rose by at least point four of a per cent in May.
Yahoo
a day ago
- Business
- Yahoo
Rate cut and hopes of more lift Australia home prices to record high in May
SYDNEY (Reuters) -Australia's house prices rose for a fourth straight month to hit a record high in May as another interest rate cut fuelled expectations of more to come, with every state capital posting a rise in prices. Figures from Cotality, formerly CoreLogic, showed national prices rose 0.5% in May from April to hit a peak price of A$831,288 ($536,015). That compared with a 0.3% gain the previous month and brought the annual growth to 3.3%. Prices in Darwin jumped 1.6%, followed by a 0.7% rise in Perth and a 0.6% increase in Brisbane. Prices in Sydney and Melbourne also gained. "The continued momentum we're seeing across almost all markets is no doubt being fuelled by rate cuts - both those that have already happened, but also potential cuts in the coming months," Cotality Research Director Tim Lawless said. Those cuts could boost sentiment in June and through the rest of the year with home prices expected to post "a modest rise" this year, though at slower pace recorded in 2024, Lawless said. The Reserve Bank of Australia cut interest rates to a two-year low last month, the second such move in the current easing cycle following a cut in February. It also left the door open to more policy easing as cooling inflation at home offered scope to counter global trade risks. Swaps imply a total easing of 85 basis points by mid next year - about three or four more rate cuts. Strong immigration and tight supply has helped Australia's property market to end a year-long slide much earlier than the expectations of many experts. "Some renewed confidence in decision making after the federal election and an ongoing undersupply of newly built homes are other factors that are likely to support further price growth," noted Cotality. ($1 = 1.5509 Australian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data
Reuters
a day ago
- Business
- Reuters
Rate cut expectations boost Australia home prices in May
SYDNEY, June 2 (Reuters) - Australia's house prices rose for the fourth straight month in May as expectations of more interest rate cuts boosted buyer sentiment, with every state capital posting a rise in prices. Figures from Cotality, formerly CoreLogic, showed national prices rose 0.5% in May from April, compared with a 0.3% gain the previous month. Annual growth in national prices was 3.3%. "The continued momentum we're seeing across almost all markets is no doubt being fuelled by rate cuts - both those that have already happened, but also potential cuts in the coming months," Cotality Research Director Tim Lawless said. Those cuts could boost sentiment in June and through the rest of the year with home prices expected to post "a modest rise" this year, though at slower pace recorded in 2024, Lawless said in a statement. The Reserve Bank of Australia cut interest rates to a two-year low last month as cooling inflation at home offered scope to counter rising global trade risks, and left the door open to further easing in the months ahead. Strong immigration and tight supply has helped Australia's property market to end a year-long slide much earlier than the expectations of many experts.
