Aussie home values record biggest monthly increase in 17 years
Aussie home values have recorded their biggest monthly increase in 17 years, with many regional areas outpacing their capital city counterparts and regional Queensland was a star performer.
Regional Queensland’s dwelling price rises continue to outpace the capital, recording a 1.9 per cent rise over the past month and 9.2 per cent growth over 12 months.
The staggering figure, released in the CoreLogic Hedonic Home Value Index report this morning, shows home values nationally surged 2.1 per cent higher in February – the largest month-on-month increase in 17 years.
“Spurred on by a combination of record low mortgage rates, improving economic conditions, government incentives and low advertised supply levels, Australia’s housing market is in the midst of a broad-based boom,” the report said.
CoreLogic’s research director Tim Lawless said such a spectacular growth phase had not been seen in Australia in a decade – a remarkable outcome given the global COVID-19 pandemic.
“The last time we saw a sustained period where every capital city and rest of state region was rising in value was mid-2009 through to early 2010, as post-GFC stimulus fuelled buyer demand,” Mr Lawless said.
Back in Queensland, Brisbane recorded a 1.5 per cent increase in dwelling values in February, 3.5 per cent over the quarter and 5 per cent in 12 months..
In regional Queensland, dwelling values rose 1.9 per cent in February and 5 per cent over the quarter.
But where regional Queensland really shines is in the 12 month growth figures, with the regions recording a combined growth of 9.2 per cent compared to Brisbane’s 5 per cent.
The report shows all regions, with the exception of Western Australia, recorded growth over the past 12 months, led by regional Tasmania.
“Regional markets (up +2.1% over the month) have continued to show a higher rate of capital gain relative to the capital cities (up +2.0%), however the performance gap has narrowed compared with the earlier phase of the growth cycle,” the report said.
“Regional areas generally recorded less of a decline in housing values through the worst of the COVID period last year, while also showing an earlier and stronger growth trend through the second half of last year.
“This regional preference is reflected in the annual growth trend, where the combined regionals index is 9.4 per cent higher while the combined capital city index is up a much smaller 2.6 per cent.”
One of the key factors pushing up dwelling values is a lack of supply in the face of increased demand.
The report found that the number of properties advertised for sale was a historically low levels, and was 26.2 per cent below 2020 levels nationally over the 28 days to February 21.
The Aussie Buyers’ Opportunities Report, recently released by mortgage broker Aussie and CoreLogic, found that many regional Queensland areas were in the midst of a ‘great market squeeze’.
In Townsville, the report found that just 6.3 per cent of housing stock hit the market in 2020, but listing numbers were even tighter in some suburbs.
It was a similar story in Cairns, where just 7 per cent of stock was listed for sale.
“The most tightly held suburbs of regional Queensland were a mix of resource intensive locations and coastal regions within the Gold Coast and Sunshine Coast markets,” the report said.