House prices are still rising, but at a less frantic pace: Corelogic

By Tom Watson · · 2 min read
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The value of Australian property has jumped higher once again according to new data, though the rate of increase has slowed down compared to previous months.

Corelogic’s latest national home value index reveals that while national housing values increased by 1.8% during April, that figure is down on the results from March (2.8%) and February (2.1%).

As Corelogic research director, Tim Lawless, explains, the rate of growth in recent months - particularly that seen in March, which was the fastest in 32 years - was not sustainable.

“The slowdown in housing value appreciation is unsurprising given the rapid rate of growth seen over the past six months, especially in the context of subdued wages growth,” he said.

“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.”

That shift in first home buyer activity was borne out in today’s March lending indicators from the Australian Bureau of Statistics’ (ABS), as first home loan commitments fell for a second consecutive month.

While loan commitments dropped by 3.1% in March to $15.6 billion, it’s worth noting that they remain at levels not recorded since 2009.

Smaller cities, regional areas top annual growth

Drilling down into the capital cities, Sydney recorded one of the largest home value increases once again this month (up 2.4%) while Melbourne values rose by 1.3%.

It was Darwin that recorded the highest month-on-month growth rate though, up 2.7% in April. That latest increase adds to what has been a significant turnaround for the Darwin market, which, at present, has the highest annual home value growth rate in the country (15.3%) according to the Corelogic index.

Australian home value changes - Corelogic Home Value Index (May 2021)

MonthlyAnnualMedian value
Sydney2.4%7.5%$950,457
Melbourne1.3%2.2%$744,667
Brisbane1.7%8.3%$558,295
Adelaide2.0%10.3%$492,285
Perth0.8%6.7%$513,598
Hobart1.0%13.8%$561,254
Darwin2.7%15.3%$465,976
Canberra1.9%14.2%$734,107
Combined regional1.9%13.0%$457,938
National1.8%7.8%$624,997

As Lawless points out and the table above demonstrates, Darwin’s resurgence is part of a wider trend which has played out in Australia’s smaller capitals.

Adelaide, Canberra, Darwin and Hobart are the only capital cities which have an annual growth rate above 10% which Lawless says is, in part, a reflection of the smaller impact that COVID has had on those markets.

Corelogic’s annual house value growth figure of 13% for ‘combined regional’ areas also demonstrates the continued surge in popularity among home buyers outside of cities during the COVID period.

In fact, according to Domain’s latest House Price Report, regional New South Wales’ towns like Byron Bay and Kiama have both broken through the $1 million median house price mark in recent months - prices which have been fueled, in part, by COVID-inspired sea changes.

RELATED: May home loan snapshot: Longer term fixed rates are rising

Thinking about making a property market move of your own in the near future? Finding your ideal home is one thing, but you’ll probably need the help of a home loan to make that dream a reality.

To compare a range of offers from a variety of lenders side-by-side on everything from fees and features to interest rates, head on over to our handy home loan comparison tables. Or get started straight away by checking out some of the competitive rates below.

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Last updated 30 October 2024 Important disclosures and comparison rate warning*

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    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Fixed Home Loan

    • Owner Occupier
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    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $2,852
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    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

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    • Owner Occupier
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    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

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    Get repayment certainty with HSBC’s low 2 Year Fixed Rate Home Loan. Make up to $10,000 of extra repayments a year. The option to split your home loan between fixed and variable. Plus, score $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 28 February 2023 and settle by 30 April 2023.

  • Fixed Rate

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    5.99 % p.a.
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    5.90 % p.a.
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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