Property values have surpassed pre-Covid levels, says CoreLogic

property-value

Housing values are up by 1% over the course of January and have surpassed pre-Covid levels, according to recent figures from property researcher CoreLogic. 

The researcher also found every capital city recorded a rise in housing value, ranging from 2.3% in Darwin down to 0.4% in both Sydney and Melbourne during January. 

Regional housing values in particular increased by more than twice compared to capital city housing, which could be due to the high volume of buyers flocking to these areas during the height of the Covid-19 pandemic. 

“Internal migration data shows more people are leaving Sydney and Melbourne for regional areas, resulting in a transition of activity from the metro regions to the outer fringe and regional markets,” said CoreLogic’s research director, Tim Lawless. 

While regional areas are getting a boost, Lawless said that drastically reduced international migration has also meant metropolitan areas are lagging behind. 

“This demographic trend is further compounded by the demand shock of stalled overseas migration,” he said. “As Melbourne and Sydney historically receive the vast majority of overseas migrants, these metro areas have been the hardest hit by this demand shock.”

CoreLogic also found that houses are still outperforming units, rising in value by 3.5% in the last six months, while units remain unchanged. 

“Demand for units has diminished through COVID-19 amidst record low levels of investor participation and changing living preferences. While demand and supply remain imbalanced we are likely to see units continue to underperform relative to detached housing markets,” said Lawless.

Home buying up with hopes market will ‘bounce back’

Despite the fact that housing value figures are continuing to climb, it doesn’t look like it’s slowing down Aussies buyers. 

In fact, CoreLogic says the number of mortgage related valuations is already 27% higher than it was a year ago. 

“If this trend persists, the rapid rate of absorption is likely to keep overall stock levels low resulting in further upwards pressure on housing prices,” said Lawless.

Similar research by ME Bank from its latest Quarterly Property Sentiment Report revealed that 77% of Aussies say they ’expect to see property prices bounce back’ this year, with 54% of property owners and buyers predicting ‘prices will go up’ over the next 12 months. 

If 2021 is the year you buy your dream home, then you’re going to need the right home loan to do it. You can compare more than 400 home loan deals by having a plan of our home loan comparison tool or by getting started with the offers below.

Compare first home loans - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Fixed Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.88% p.a.
    fixed 3 years
    2.89% p.a.
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Well Balanced

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    2.52% p.a. variable
    2.55% p.a.
    Go to site
    Details
  • placeholder
    Back to Basics Special

    LVR<90%, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.59% p.a. variable
    2.60% p.a.
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Well Balanced

    Investor, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    2.87% p.a. variable
    2.90% 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 Loans 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.