CoreLogic's June home value index shows a lift in Sydney's and Melbourne's housing prices, but values are still trending downward nationally, having recorded a 0.2% fall over the month.
The June housing market results present an early sign that lower mortgage rates and improved sentiment are already having a flow-on effect for housing market conditions in Sydney and Melbourne, while most other regions of Australia continue to show relatively soft housing market outcomes.
MONTHLY CHANGE IN CAPITAL CITY HOME VALUES
Sydney and Melbourne dwelling values recorded a slight rise in June, up 0.1% and 0.2% respectively, and was the first monthly increase in Sydney housing values since the market peak in July 2017. Melbourne dwelling values haven't risen since the market moved through a peak in November 2017.
The only other regions to record a rise in housing values over the month were Hobart (+0.2%), as well as the regional areas of South Australia (+0.1%) and Northern Territory (+0.2%)
ALL CAPITALS RECORD FALLS OVER QUARTER
On a quarterly basis, every capital city housing market has recorded a fall in values, highlighting the broad geographic scope of this housing market downturn. The largest falls over the past three months were recorded in Darwin (-3.6%) and Perth (-2.1%) where the weaker trend has persisted since mid-2014. Adelaide recorded the smallest decline amongst the capitals over the quarter, with values down 0.4%.
REGIONAL VALUES DOWN 3.1% FOR FINANCIAL YEAR
Across the regional markets, values were 0.4% lower over the month to be down 3.1% for the financial year. Dwelling values recorded a rise over the June quarter in Regional South Australia (+0.6%) and Regional Tasmania (+1.3%). Although these areas have recorded modest gains over the quarter, the trend across the regional areas of Australia is generally one that is losing momentum.
RECOVERY AT TOP END OF MARKET
The most expensive quarter of the housing market is leading a recovery trend, with the June quarter seeing top quartile values fall by 0.9% across the combined capitals, while lower quartile values were down 1.1% over the quarter and the broad 'middle' of the market recorded a 1.2% drop in values.
"Potentially we are seeing the first signs that the top end of Sydney and Melbourne's housing markets are leading the recovery trend." Says CoreLogic's Tim Lawless.