Latest news with #HomeValueIndex
Sydney Morning Herald
4 days 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
4 days 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.
Business Times
4 days ago
- Business
- Business Times
Australian house prices continue to climb after RBA rate cut
[SYDNEY] Australian home prices climbed for a fourth straight month, driven by a second interest rate cut by the country's central bank and expectations more will follow later this year. The Home Value Index advanced 0.5 per cent in May, with every major city recording a rise, property consultancy Cotality, formerly CoreLogic, said on Monday (Jun 2)). Darwin was the top gainer, climbing 1.6 per cent, followed by Perth which rose 0.7 per cent. The bellwether market of Sydney was up 0.5 per cent and Melbourne increased 0.4 per cent. '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,' said Tim Lawless, research director for Cotality. 'With interest rates falling again in May, we are likely to see a further positive influence flowing through to housing values in June and through the rest of the year.' Financial market pricing implies the Reserve Bank of Australia (RBA) will cut three more times this year to bring the cash rate to 3.1 per cent, from 3.85 per cent now. The national dwelling value was about eight times the household income at the end of last year, highlighting affordability constraints while home-loan serviceability was also at an all-time high, the Cotality data showed. A major factor supporting house price growth across the country is a chronic under-supply of homes. The newly re-elected government of Prime Minister Anthony Albanese has promised steps to address a once-in-a-generation housing crisis by building more homes and providing financial incentives to first-home buyers. While home prices gained in May, the monthly pace of rental growth eased to 0.4 per cent following three months of 0.6 per cent increases, according to Cotality. The largest capital markets of Sydney and Melbourne are among the softest, the data showed. The slowdown comes despite rental vacancy rates being below 2 per cent as affordability constraints and slowing migrations ease some of the demand pressure. 'Even if there are few vacant properties available for rent, it's hard to see how rental values can continue to record a strong rise off already high prices, especially with wage growth now slowing,' Cotality said. 'Larger households may be forming as a result, such as share homes and multi-generational living arrangements, taking some pressure off demand.' BLOOMBERG
Sydney Morning Herald
12-05-2025
- Business
- Sydney Morning Herald
How far property prices soared in a decade and what happened next
Property values have edged below their peaks recently, but new figures lay bare how the pullback pales in comparison to their long-term growth. Sydney home values are 1.1 per cent below their recent peak, figures from Cotality (formerly known as CoreLogic) show, but are 61.6 per cent higher than a decade ago, the research house's Home Value Index for April shows. Melbourne values are 5.4 per cent below their peak after sluggish price performance over the past couple of years but have risen 43.8 per cent over the past 10 years. In Brisbane and Adelaide, prices are at their peak and have nearly doubled in a decade – up 91.2 per cent and 93.6 per cent respectively. Perth is at peak – up 55.6 per cent in 10 years. Cotality head of Australian research Eliza Owen attributed the past decade's price growth to the gap between supply and demand for housing, as well as lower interest rates and an improvement in the jobs market. 'It's come back to the mismatch of demand for housing, and the rates at which we've been able to build and supply and match that demand, so constraints on the supply side,' she said. 'There's also been different financial conditions which have enabled that strong increase in values. Through the COVID period in particular, the massive reduction in interest rates, that created a lasting boom in housing values.' She added that cities such as Adelaide, Brisbane and Perth had strong long-term growth rates but much of that growth had happened more recently due to the pandemic boom.
The Age
12-05-2025
- Business
- The Age
How far property prices soared in a decade and what happened next
Property values have edged below their peaks recently, but new figures lay bare how the pullback pales in comparison to their long-term growth. Sydney home values are 1.1 per cent below their recent peak, figures from Cotality (formerly known as CoreLogic) show, but are 61.6 per cent higher than a decade ago, the research house's Home Value Index for April shows. Melbourne values are 5.4 per cent below their peak after sluggish price performance over the past couple of years but have risen 43.8 per cent over the past 10 years. In Brisbane and Adelaide, prices are at their peak and have nearly doubled in a decade – up 91.2 per cent and 93.6 per cent respectively. Perth is at peak – up 55.6 per cent in 10 years. Cotality head of Australian research Eliza Owen attributed the past decade's price growth to the gap between supply and demand for housing, as well as lower interest rates and an improvement in the jobs market. 'It's come back to the mismatch of demand for housing, and the rates at which we've been able to build and supply and match that demand, so constraints on the supply side,' she said. 'There's also been different financial conditions which have enabled that strong increase in values. Through the COVID period in particular, the massive reduction in interest rates, that created a lasting boom in housing values.' She added that cities such as Adelaide, Brisbane and Perth had strong long-term growth rates but much of that growth had happened more recently due to the pandemic boom.
