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

australian-suburban-home

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.

Compare home loans - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.
    fixed 3 years
    2.13% p.a.
    Go to site
    Details
  • Hot DealFor a chance to win $100K towards your home loan, apply with Athena before Oct 31 & approved by Dec 15 (Please read the full T&C's)
    placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.
    Go to site
    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.
    Go to site
    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.
    Go to site
    Details

* 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, loan amount and term entered. 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.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.