Rate Hikes Divide Housing Market: Insights from CoreLogic Australia
Australia’s property market is currently showcasing a tale of two cities, with a significant divide emerging amidst the historic two-year rate hike cycle. According to the latest analysis from CoreLogic Australia, the nation’s property market has exhibited both resilience and decline, highlighting stark contrasts across cities, suburbs, and regions.
Key Findings:
- Modest Growth in Home Values: Over the past two years since the rate hikes began, national home values have risen by only 2.8%. This is a stark contrast to the substantial 31.7% increase observed in the two years preceding the rate hikes.
- Record Highs in Capital City Suburbs: Despite the overall modest growth, almost one in two capital city suburbs have hit record high property values, indicating pockets of strong market performance.
Preliminary Auction Clearance Rate Decline:
CoreLogic’s data also reveals a continuous decline in the preliminary auction clearance rate, which dropped to 71.1% last week across the combined capitals. This marks a decrease from the previous week’s 72.6% (revised down to 65.1%) and is the lowest preliminary clearance rate so far this year, matching the rate observed during the Easter long weekend.
Pain and Gain Report Highlights:
CoreLogic’s Pain and Gain Report provides a detailed analysis of property resales, offering insights into the proportion of properties sold at a nominal loss or gain. The report breaks down data into capital city council regions and includes both houses and units, as well as investor versus owner-occupier resales and regional market performance.
Takeaway:
The recent data from CoreLogic underscores the complexity and regional variability within Australia’s property market. While some areas experience record highs, others are seeing declines, influenced by broader economic factors such as interest rate hikes. For potential buyers, sellers, and investors, staying informed with the latest market insights is crucial for making strategic decisions.
Read the full reports:
- Rate hikes divide housing market
- Preliminary auction clearance rate continues to fade
- Pain and Gain Report