CoreLogic’s national Home Value Index surged 1.7 per cent higher over November, delivering the fifth consecutive monthly increase, coupled with the largest monthly gain in the national index since 2003.
Sydney and Melbourne continued to drive the rapid recovery, with values up by 2.7 per cent and 2.2 per cent respectively over the month.
Canberra recorded a 1.6 per cent rise for the month and 3.2 per cent for the quarter, with the median home value (units and houses) at $611,841. The increase over the 12 months is 3 per cent.
The median value for houses is heading towards $700,000 with the November figure at $687,798, up 1.8 per cent and double that for the quarter. That’s a 3.9 per cent rise over the year.
Units were practically steady in October but have picked in November, rising 1 per cent, and 1.7 per cent for the quarter. But over the year unit values are down 0.5 per cent. The median value is $433,999.
The number of new listings in the Canberra market in November was down compared with last year but remains above the decade average.
CoreLogic says 761 fresh listings were added over the past four weeks, which was almost 17 per cent lower than the number added at the same time last year, but 2.2 per cent higher than the decade average.
This was the lowest number of new listings added to the market for this time of the year since 2014.
“Total listing numbers were tracking at 2,430 across Canberra over the past four weeks, down almost 9 per cent from last year but 4.6 per cent above the decade average for the city,” CoreLogic said.
“Higher than normal stock levels across the city suggests buyers probably are not facing a great deal of urgency in this market and can potentially drive a harder bargain at the negotiation table.”
CoreLogic’s Tim Lawless said the housing recovery overall was concentrated at the premium end of the market, and in detached houses in blue-chip markets.
“As housing values become less affordable in these high-end markets, demand is likely to ripple outwards to the more affordable areas,” Tim Lawless said.
Factors driving demand include lower interest rates and a relaxation in borrowing requirements but CoreLogic questions whether the recovery can be sustained, at least in Sydney and Melbourne.
Canberra, with its relatively high wages and strong local economy, did not suffer the downturn experienced elsewhere and there is a good supply and pipeline of units, but quality detached houses remain at a premium.
The outlook remains for steady, consistent growth.