The housing market is in the midst of an impressive recovery that has seen it regain up to 1/3rd of the value it lost during the downturn. In fact, the combined capital city average dwelling price increased by 2.2% during the three months to September 30th, according to CoreLogic.
If you’ve been considering jumping on the property ladder, now could be the perfect time.
HOUSE PRICE RESURGANCE IN SYDNEY AND MELBOURNE
Sydney and Melbourne are once again leading the country for average house price growth, highlighted by the fact that, during September, both city’s average prices increased by 1.7%. If growth continues at this rate prices in the cities will be near their all-time highs within 6 months.
The data also shows that this isn’t a one-off. During the three months leading to September 30, prices in Sydney and Melbourne increased by 3.5% and 3.4%, respectively. These numbers also tell us that house price growth is speeding up and could be even more impressive in the coming months.
MEASURED PERFORMANCE FOR OTHER CAPITAL CITIES
As usual Sydney and Melbourne stand apart as the top performers when it comes to house price movements. But, looking around the grounds at the rest of the country, CoreLogic’s data shows the following movements in the other capital cities:
||Three months to Sep 30
Brisbane and Canberra are both showing positive signs, with small increases for the month and the quarter. In the meantime, prices in Darwin and Perth appear to be continuing their downward trend, while growth in Hobart has reversed, resulting in a small average price decrease during September. Prices in Adelaide stood still during the same period, after several months of gradual growth.
The impressive growth from Sydney and Melbourne has counteracted the sluggishness of other capital cities and driven the national average house price up by a decent 1.7% during September. That reversal comes after a fall of 3.7% during the most recent quarter.
IS IT TIME TO INVEST IN AUSTRALIAN HOUSING?
Property investor activity almost halved from late 2016 to late 2018. But CoreLogic has recently found that investors are getting back on the horse, with loan commitments from investors rising by 11.6% over the three months to August 2019.
This is most likely a response to falling interest rates and increasing confidence in the property market, and may help fuel further price growth.
Are you considering buying a home or investment soon? The numbers are looking good, so now could be the ideal time to make your move.