All-time highs for property in east. West not so much
Via CoreLogic:
Low mortgage rates, a swift economic recovery, which has spurred consumer sentiment, and low listing volumes have catapulted national housing values to new record highs. At the end of March, the CoreLogic national home value index increased a further 2.8%, placing values 5.6% above the previous market peak in October 2017. The combined value of Australian dwellings hit $7.9 trillion dollars over the month, according to CoreLogic. This cements residential property as an extremely large and important asset class.
Comparing current capital city values with previous peaks adds some perspective to the current upswing particularly in Perth and Darwin, where values remain substantially below their record highs from 2014. It also highlights the very different dynamics across capital cities such as in the ACT, where dwelling values have hit a new record high every month for 19 months.
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Via CoreLogic:
As social distancing restrictions eased across Victoria from the end of September, more vendors put their property up for sale. In the three months to November, the number of new listings added to the market across Australia averaged around 39,000 a month. This was 20.8% higher than in the winter months.
Although winter usually sees less listings due to seasonality anyway, strict restrictions and subdued economic conditions across Melbourne in particular had weighed on transaction activity over winter. As more new stock was added to the market in the months following, it is worth considering how much demand for property absorbed this rising supply.