Australian homeowners have experienced a significant wealth boost, with the median dwelling value increasing by $59,000 over the financial year 2023-24. According to CoreLogic’s latest data, Australian dwelling values rose by 0.7% in June alone, culminating in an impressive 8.0% growth over the past year. This surge has brought the median dwelling value in Australia to $794,000.
This robust growth is a stark contrast to the previous financial year (FY2022-23), where the national index saw a decline of 2.0%. This decline was largely driven by a 7.5% drop in values following the initial cash rate hikes starting in May 2022. Despite these challenges, the property market has shown resilience, bouncing back with significant gains over the past year.
While the annual growth is notable, the rate of increase has moderated since mid-2023. During that period, the quarterly growth peaked at 3.3%. The June quarter saw a more modest rise of 1.8%, consistent with the growth rates of the March and December quarters (1.9% and 1.8% respectively). Tim Lawless, CoreLogic’s research director, noted that the national index has settled into a steady pattern, increasing by 0.5% to 0.8% month-on-month since February.
Although the overall market is trending upwards, regional performance varies. Melbourne and regional Victoria recorded slight declines of 0.2% and 0.3% respectively in June. Hobart also showed weaker conditions with a minimal increase of 0.1% in June, resulting in a 0.3% decline over the quarter and a slight 0.1% drop over the financial year. Conversely, Perth experienced a substantial rise, with values up by 2.0% in June and an astounding 23.6% over the year. Adelaide and Brisbane also saw significant increases, with annual growth rates of 15.4% and 15.8% respectively.
Regional markets have mirrored the growth trends seen in the capital cities. Regional Western Australia led the charge with a 1.5% rise in June and a 16.6% increase over the year. Regional South Australia and Queensland also posted strong growth, whereas regional Victoria saw a slight decline of 0.5%, and regional Tasmania had a modest rise of 0.7%.
The growth in property values is reflected in the advertised stock levels. The strongest markets, such as Perth, Adelaide, and Brisbane, are experiencing severe shortages of homes available for sale. Perth’s listings were 23% lower than the same time last year and 47% below the five-year average. Similarly, Adelaide and Brisbane saw listings 43% and 34% below the five-year average, respectively. In contrast, Melbourne’s listings were 14% above the five-year average, and Hobart’s listings have been consistently elevated, tracking 46% above average.
Despite challenges such as high interest rates, cost of living pressures, and tight credit policies, housing demand remains robust. Nationally, the annual number of homes sold was 8.6% higher than a year ago and 4.8% above the five-year average. Perth led the way with a 29% increase in home sales relative to the historic five-year average, indicating strong buyer activity.
With substantial increases in dwelling values and strong demand, homeowners are enjoying significant wealth gains. At Fortify Loans, we are dedicated to helping you navigate this dynamic market. From refinancing your existing loan, unlocking equity, buying an investment property or keeping up to date with the latest investment trends – we are here to help. Contact us today to explore your home loan and investment options, and take advantage of the current market trends to maximize your financial potential.
Original article referenced from CoreLogic
