Australian Home Values Pace Of Growth Eases
Australia’s rapidly rising property prices have started to slow, with new figures showing price growth eased last month after hitting a 32-year high in March. Property prices in Sydney jumped 2.4 per cent in April to a median value of $950,457, according to the CoreLogic Home Value Index released on 3rd May. The median value is now up 8.8 per cent over the quarter, with prices jumping by 3.7 per cent back in March.
Values in Melbourne increased by 1.3 per cent over the month to a median of $744,679 – down from a 2.4 per cent jump in March – and are up 5.8 per cent over the quarter. The figure includes both houses and apartments. The slowdown in price rises was unsurprising given the rapid rate of growth seen in recent months, said Tim Lawless, CoreLogic’s research director.
He expected that the pace of capital gains, which is still quite rapid, could slow further in the coming months as the volume of homes on the market increased, and affordability constraints dampened housing demand – with the latest Australian Bureau of Statistics figures showing first-home buyer borrowing activity started to decline in February.
“With housing prices rising faster than incomes, it’s likely price-sensitive sectors of the market, such as first-home buyers and lower-income households, are finding it harder to save for a deposit and transactional costs,” he said.
“If we are starting to see buyer demand impacted by affordability constraints, at a time when supply levels are rising, it makes sense that we could start seeing a rebalancing between buyers and sellers.”