Housing values posted a broad-based rise in February, with CoreLogic’s National Home Value Index up 0.6%.
The rapid rate of capital gains across the Perth housing market is showing no signs of slowing down, with values rising a further 1.8% in February, on par with a cyclical high recorded in October last year.
The ongoing rise in values reflects a persistent imbalance between supply and demand, which varies in magnitude across the cities and regions.
Perth continues to stand out with a substantially higher rate of growth compared to any other region, up 1.8% in February, with Adelaide, Brisbane, and the regional areas of South Australia, Western Australia, and Queensland also showing a consistently high rate of capital growth month-to-month.
Rents are also rising substantially faster relative to other cities, with house rents up 13.5% and unit rents 16.5% higher over the past year.
Demand is continuing to substantially outweigh supply, and this dynamic doesn’t look to be changing any time soon.
Despite the solid growth in Values, Perth is still a relatively affordable housing market compared with the other capital cities.
Potentially, we’re starting to see some early signs of a boost to housing confidence, as inflation eases and expectations for a rate cut, or cuts, later this year, firm up.
The re-acceleration and value growth have been accompanied by a bounce back in auction clearance rates and in consumer sentiment.
Nationally, the estimated dwelling sales over the three months ending February were 4.7% above last year, with the capital cities a little stronger, tracking 6% higher than a year ago.
Relative to the previous five-year average for this time of the year, home sales are actually down 5% nationally and down 1.5% across the combined capitals.
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