Growth in property value soars to 17-year high

CoreLogic’s latest findings have confirmed what most in the real estate industry already knew – the housing market is booming.

According to CoreLogic’s Hedonic Home Value Index, property prices across Australia grew by 2.1 per cent in February, the largest month-on-month increase in 17 years.

That’s an extraordinary result, considering the social and economic impact of the global COVID-19 pandemic over the past 12 months.

CoreLogic’s research director Tim Lawless said such a spectacular growth phase had not been seen in Australia in a decade.

“The last time we saw a sustained period where every capital city and rest-of-state region was rising in value was mid-2009 through to early 2010, as post-GFC stimulus fuelled buyer demand,” he said.

While data at a local level was slightly less dramatic, Adelaide property values have still registered significant growth.

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Dwelling values here grew by 0.8 per cent in the four weeks to February 28, following increases of 2.7 per cent for the quarter and 7.3 per cent for the year.

The Toop&Toop sales team’s experiences on the ground in recent weeks certainly support the most recent CoreLogic data.

Our homes have attracted up to 70 groups through a single weekend property inspection and several have achieved sold prices significantly beyond vendor expectations.

On a national level, Sydney and Melbourne were among the strongest-performing markets after struggling through much of 2020.

Sydney home values spiked by 2.5 per cent, while Melbourne values were up by 2.1 per cent.

Lawless said it was unclear if the growth in those cities could be sustained over a longer period.

“But at this current rate of appreciation, it won’t be long before Australia’s two most expensive capital city markets are moving through new record highs,” he said.

There’s no doubt the buoyant buyer pool has been spurred on by sparse stock levels and record-low mortgage rates, creating enormous competition for quality homes.

According to CoreLogic data, 1693 new listings hit the Adelaide market in February, down 2.7 per cent on the corresponding period in 2020. Total listings had dropped to 5220, a decrease of 31.9 per cent.

“Although new listings are likely to track higher over coming months, if buyer demand continues to lift it’s likely overall advertised stock levels will remain low,” Lawless said.

“Serious buyers would be well advised to have their financing pre-approved and be ready to act fast in order to secure a property under such tight supply conditions.”

Bronte Manuel
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