Over the past three months, rose by 7%, with the median house price in Australia now sitting at $634,355.
After lagging , prices in the capital cities have now started to outpace the regional areas. We saw a significant shift from last year; however, many homebuyers are making it clear that the time is right to jump back into the capital city markets ahead of regional areas.
three months and, in May, were 2.3% higher, compared to the 2.0% increase in regional areas. Over the quarter, regional areas have lagged with a 6.5% increase versus 7.1% in the capital cities.The top End of the Market is Moving. While the boom in is evident for all to see, CoreLogic’s Tim Lawless notes that it is now the premium end of the market, notably in Sydney and Melbourne, really driving the gains.“Despite the consistently strong headline results, the underlying trends have shifted over the past year,” Mr. Lawless said. “From a geographic perspective, the smaller the housing market out of the COVID slump, but now Sydney has risen to record the largest capital gain over the past three months with values up 9.3%.”
Stock Levels Remain Low
Low stock, high demand, and record-low interest rates in most areas. CoreLogic notes that while supply has increased, demand is still outpacing supply in most locations. The median time on the market remains around its record low of 25 days, while rates are also around record lows. The typical discount from the original asking price was recorded at 2.7% over the past three months.
“The sales to new “This rapid absorption rate keeps advertised strong selling position while buyers are weak at the negotiation table.” despite the rise in new listings. Consequently, vendors remain in aremains around 1.1, meaning for every new listing, there is more than one sale occurring,” said Mr. Lawless.
Positive Cashflow Opportunities
With values rising, CoreLogic believes there are still several opportunities for . With the average mortgage rate around 2.5%, many cities and regional areas show increasing rental yields, making them more cash flow positive than in .Notably, Perth and Darwin have seen 15-20% increases in rental yields over the past 12 months due to a tight supply of rentals. CoreLogic notes that the opportunity for positively geared rising and rental vacancies still high in many areas.
Housing Boom Rolls On
CoreLogic says the housing boom is in full swing across the country and is not slowing down. They of financial support has had virtually no impact on housing markets, and the overall jobs market is improving.CoreLogic expects to continue to rise throughout 2021 and into 2022, albeit at a gradually slower pace.