Over the last week, a lot went down - fast. In fact, the only thing that outpaced the events that led to many of Australia’s states and territories finding themselves in lockdown was the rise of house values across the nation, which soared at the highest annual rate of growth we’ve seen in Australia since April 2004 (off the back of the early 2000’s housing boom which saw a period of exceptional growth).
In our latest property update, you’ll find:
- A quick update on the soaring property market and how it may be losing steam
- What the price of a house in Australia is in June 2021
- The supply and demand dynamic that is fuelling the property prices in the market
- How the current lockdowns across parts of Australia will impact the property market
Despite another month of strong gains, there are signs that some heat is coming out of the market
The latest Hedonic Home Value Index published by CoreLogic on the 1st of July showed that prices in almost every capital city across Australia rose to record highs.
But while home prices soar, there have also been the signs of a slowdown in some of the Australia’s hottest markets. House values in Perth lifted by 0.1 per cent to be 7.3 per cent up over the year while in Darwin they increased by 0.6 per cent to take the quarterly increase down to 4.9 per cent.
CoreLogic’s head of research, Eliza Owen said that while the biggest increase in the June quarter was for the top quarter of the market, up by 8 per cent, this was a slowdown from the 9.2 per cent experienced through the March quarter.
Persistently, high housing value growth rates are unsustainable in the long run, from both an affordability perspective, and renewed headwinds amid a lockdown in Sydney and other parts of the country.
What is the price of a house in Australia?
Over the past year, dwelling values had improved by 13.5 per cent with housing up by 15.6 per cent. CoreLogic’s head of research, Eliza Owen said,
“This is the highest annual rate of growth seen across the Australian residential property market since April 2004 when the early 2000’s housing boom was winding down after a period of exceptional growth,”
The performance gap has narrowed between regional Australia and the capital cities, though regional Australia did outperform slightly in monthly growth terms, rising 2 per cent through June compared to 1.9 per cent across the combined capital cities. Across regional Australia, regional NSW had the highest annual growth in dwelling values at 21.1 per cent.
Across the capital cities:
What is the price of a home in Sydney right now
- Median House price: $1,224,613
- Median Unit price: $794,193
- Median Dwelling price: $994,298
House values in Sydney jumped another 3 per cent in June (a whopping 18.5% in the last six months), taking the median price to over $1.2 million.
What is the price of a home in Melbourne right now
- Median House price: $929,769
- Median Unit price: $610,043
- Median Dwelling price: $753,100
In Melbourne, house values lifted by 1.8 per cent or by almost $22,000 despite the start of the month being dominated by a lockdown. The city’s median value is now at a record $929,769. Melbourne house values have increased by 11.4 per cent so far this year (more than $100,000).
What is the price of a home in Brisbane right now
- Median House price: $657,551
- Median Unit price: $415,536
- Median Dwelling price: $586,142
In Brisbane, the median price of a house increased by 11.9% in just the last 6 months, ending at the median price of $657,551.
What’s the price of a home in Canberra right now
- Median House price: $877,311
- Median Unit price: $501,754
- Median Dwelling price: $770,873
Canberra house values continued to reach record heights, jumping 2.7% just this month to end at $877,311
What’s the price of a home in Adelaide right now
- Median House price: $551,538
- Median Unit price: $359,359
- Median Dwelling price: $508,712
What’s the price of a home in Perth right now
- Median House price: $550,099
- Median Unit price: $395,979
- Median Dwelling price: $526,166
What’s the price of a home in Hobart right now
- Median House price: $652,092
- Median Unit price: $492,748
- Median Dwelling price: $607,960
What’s the price of a home in Darwin right now
- Median House price: $567,842
- Median Unit price: $337,048
- Median Dwelling price: $475,083
Strong demand, low supply continues to create buyer urgency
The Reserve Bank board will meet next week where it is expected that they will announce changes to key elements of its quantitative easing program. It is also expected that official interest rates will be kept at their current record low levels of 0.1 per cent.
In addition to these strong demand conditions, Ms Owen noted total advertised stock remains relatively low.
The latest listings count from CoreLogic indicates that in the 28 days to June 27th, total advertised stock remained 24.4 per cent below the five-year average. This dynamic of strong consumer demand, and low housing supply, continues to create some urgency among buyers.”
This dynamic of sales out-stripping new listings has been a persistent trend through 2021, even though new listings have risen alongside property prices.
CoreLogic estimates that there were approximately 126,320 fresh listings advertised for sale in the three months to June, 7.9 per cent above the previous five-year average for the June quarter.
However, in the same period, there were 167,450 sales nationally. This shows there was more than one sale for every new listing added to the market, a trend that has continued to define the property market in 2021, resulting in high auction clearance rates and favourable selling conditions.
How will the current lockdowns affect the property market?
In the last six months, CoreLogic has observed almost 582,900 transactions nationally in the property market. This is the highest annual sales volume seen since February 2004, with the highest volumes seen in Sydney (110,064), Melbourne (89,234) and regional Queensland (80,549).
Australian dwelling values will finish the financial year 13.5 per cent higher with sales volumes remaining elevated, but many are wondering whether the current lockdown conditions in parts of Australia, in particular Sydney, one of the biggest and busiest capital city property markets, will have an impact on the coming weeks.
Through circuit-breaker lockdowns, CoreLogic has observed short, sharp falls in sales and listings, followed by a swift recovery in transaction activity, with little impact observed on prices.
Ms Owen concludes
The question is not what impact short lockdowns have on the housing market; there seems to be relatively little impact. Instead, outcomes for the housing market and industry will depend upon how long lockdown conditions last across parts of the country, and whether some of the institutional responses offered through 2020 are reinstated if an extended lockdown occurs.”
Keeping up with market trends in your local area is vital. Track recent listings and sales in your area, look at what they sold for and how long they were on the market. This will help give an idea of what your property is worth once things open up again.
Staying in contact with your local agent in a quickly changing market can help you understand the current value of your property and keep abreast of the ever changing rules relating to COVID-19.