Property Market Update – 6 September 2019
Spring is here, and with it the news that the property market is showing signs of recovering in Sydney and Melbourne. I’ve now updated the capital city table based on Core Logics latest housing price index data.
Recall that rather than just looking at dwelling values, I prefer to look to the fine-print of the data to see what’s happening to house prices, given they’re the biggest component of what’s driving property prices.
Source: CoreLogic Home Price Value Index Tables (www.CoreLogic.com.au)
Red indicates a negative value, green indicates a positive value and white is neutral.
↑ represents an improvement, and ↓ represents a deterioration from the last month’s results.
There is a little more green, and a little less red this month, revealing that a weak to moderate real estate revival seems to be underway in Sydney, Melbourne, Hobart and Canberra.
A narrative that supports this view is that buyers have been enticed to enter the market buoyed by cheaper interest rates, while sellers are still holding back and waiting for better prices. Hence the lack of stock available for sale is causing buyers to become more aggressive and pushing prices up… for some properties in some suburbs.
Darwin is still in the grips of a severe real estate downturn, while there are still no clear green signs of a market bottom in Perth. Brisbane and Adelaide seem to be losing a little bit of momentum.