January sees rebound for housing values

Sydney and Melbourne saw the largest growth, increasing by 1.1 per cent and 1.2 per cent, respectively.

Meanwhile, Hobart posted growth of 0.9 per cent, Brisbane with 0.5 per cent, Canberra with 0.3 per cent, Adelaide with 0.2 per cent and Perth and Darwin with 0.1 per cent.

Commenting on the results, CoreLogic head of research Tim Lawless noted that although there is an “apparent recovery across every GCCSA (Greater
Capital City Statistical Area) of Australia, the speed of growth has lost some momentum over recent months”, with the national dwelling index slowing from a recent monthly peak of 1.7 per cent in November, to 0.9 per cent in January.

“Seasonal effects provide some explanation for the slowdown. The CoreLogic seasonally adjusted hedonic index implies the time of year shaves about 1 basis point of growth from the December reading and 2 basis points from the January reading," Mr Lawless explained.

“Factoring in the seasonal affect, the latest results indicate a reduction in the speed of growth across most markets, especially for Sydney and Melbourne where affordability constraints are once again becoming more pressing. As advertised stock levels rise over the early part of the year, we could some further dampening of growth rates.”

Nationally, housing values recovered 6.7 per cent since finding a floor in June last year, however CoreLogic’s national index remains 2.2 per cent below the October 2017 peak, Mr Lawless added.

“With housing values rising at the quarterly pace of 3.7 per cent, we are likely to see a nominal recovery in the national home value measure within the next two to three months,” he said.