CoreLogic’s nationwide House Worth Index (HVI) notched a 0.6% improve in March, mirroring February’s progress and marking the 14th consecutive month of rising housing values.

The nationwide HVI has surged 10.2% since its decline in early 2022, pushing dwelling values to new information every month since November final yr.

Capital metropolis dynamics

Regardless of the general uptrend, Tim Lawless (pictured above), CoreLogic’s analysis director, highlighted the range in metropolis performances.

“Perth’s housing market the place values have been up 1.9% over the month, adopted by Adelaide and Brisbane with 1.4% and 1.1% progress,” Lawless mentioned. “The remaining capitals are displaying a lot decrease charges of change, though Melbourne is the one capital metropolis to file a unfavorable quarterly motion, down -0.2% over the primary three months of the yr.”

Quarterly progress acceleration

The nationwide quarterly progress fee quickened to 1.6% in Q1 2024 from 1.4% within the earlier quarter. Regardless of this acceleration, progress has moderated since mid-last yr, reflecting impacts from fee hikes, cost-of-living pressures, and housing affordability challenges.

However placing upward stress on house values regardless of the headwinds, Lawless mentioned, was the persevering with demand for housing amidst provide shortages.

“Housing stays briefly provide, and buying demand is excessive as a consequence of interstate and abroad migration charges which are nicely above common,” he mentioned.

This demand, coupled with various affordability throughout cities, explains the various progress outcomes.

Shifts in market segments

The strongest progress has now shifted to the decrease quartile in most capital metropolis markets, a pattern mirrored by regional markets.

Within the mixed capital cities, house values within the decrease quartile rose by 3.1% within the first quarter, outpacing the 0.7% improve within the higher quartile. This sample of extra strong progress within the decrease worth section was constant throughout all main capitals.

“With housing affordability changing into tougher … it’s no shock to see demand being skewed in the direction of the decrease finish of the worth spectrum,” Lawless mentioned.

Regional variations and gross sales quantity

Whereas regional housing markets additionally noticed worth will increase, regional Victoria skilled the softest progress, with values down -0.3% within the first quarter of the yr.

The amount of house gross sales in Q1 was 9.5% larger than final yr, indicating a restoration from the earlier downturn, CoreLogic reported.

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