Yahoo Finance Aussie houses worth $131,236 more than last year
Property prices in Australia continued to grow in January, increasing 1.1 per cent over the month, new CoreLogic research found.
This is an increase from December, when house prices were up 1 per cent.
However, despite the monthly increase, CoreLogic said the longer-term trend was pointing towards a slowdown of our red-hot property market.
Also read: Real estate agents reveal little-known open house red flags
Also read: Up $250 a week: 20 suburbs where it’s impossible to rent
Also read: 15 property investment lessons I learned from COVID
CoreLogic research director Tim Lawless said January tended to be a less active time in the property market, so it would be interesting to watch the trend as activity picked up again.
“As the volume of home sales moves out of seasonal lows, we should get a firmer reading on how 2022 is shaping up,” he said.
“The early indication is that housing markets are starting 2022 with a similar trend to what we saw through late last year. Values are still broadly rising, but nowhere near as fast as they were in early 2021.”
Lawless said the slowdown had been brought on by less government stimulus, worsening affordability, rising fixed-term mortgage rates and a tightening in credit conditions.
Where are prices rising the most?
The research found that the national housing market reached a new high in January, with house prices up 22.4 per cent compared to this time last year.
That marks the highest annual rate of growth since June 1989.
In dollar terms, the typical Australian home is now worth $131,236 more than it was a year ago.
Brisbane recorded the highest annual growth rate across the capital cities, with housing values up 29.2 per cent or around $159,763.
On a monthly basis, here is how each state performed:
Brisbane - up 2.3 per cent
Adelaide - up 2.2 per cent
Hobart - up 1.2 per cent
Sydney - up 0.6 per cent
Perth - up 0.6 per cent
Darwin - up 0.5 per cent
Melbourne - up 0.2 per cent
Three of the eight capital cities are now recording a median house value over the $1 million dollar mark.
Melbourne’s median house value surpassed $1 million for the first time in January, while it was the second month in a row Canberra’s median house value passed $1 million.
In Sydney, the median house value climbed to just under $1.39 million.
The difference between the national median house and unit value reached a new record high of 28.3 per cent in January.
CoreLogic said this may see demand gradually deflect towards the more affordable medium-to-high-density sector of the market.
Regional markets have again shown a substantially stronger result for housing values, with the combined regionals index up 1.8 per cent over the month and 6.3 per cent over the rolling quarter.
Similar to the capital cities, it was regional Queensland (2 per cent) and regional South Australia (2.1 per cent) that led the pace of growth over the month, however every broad ‘rest of state’ region recorded at least a 1.2 per cent gain.
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.
