Rising National Property Prices in July Restoring Market Confidence
July Dwelling Prices Show a Stabilising National Property Market, with Growth in 5 out of 8 Capital Cities
If you’re a property owner or investor you’ve likely been holding your breath for close to 2 years. We’re hearing a collective sigh of relief following month to month easing for the first 6 months of 2019. Together with signs of the falling house prices finally hitting the floor Australia is seeing a restoration of investor confidence.
The latest stats from CoreLogic for July bring some good news. Numbers coming in for July show national property prices rising across 5 capitals. Finally Sydney, Melbourne, Brisbane (.02%), Hobart (0.3%) and Darwin (0.4%) all recorded growth. After declines since August 2017 it is the first month of rises in the nation index which is 8.3% down since it’s peak. July has given wary buyers and sellers hope that we may have hit the floor.
Whilst only a minor increase in values, the minimal growth demonstrates a broadened stabilisation across the country. Organic slowing began in May but has boosted into the positives likely thanks to 3 major changes in the property landscape.
1. Increased Housing Market Confidence following the Federal election
2. Record low mortgage rates expected to drop even further over the next year
3. Improved access to credit thanks to easing of restrictions
Other contributing factors likely include more affordable housing, recent tax cuts and a reduction in advertised supply. The ongoing developments is expected to remain gradual over the remainder of the year, with significant growth predicted over the next 3 years.
Primary drivers for the turnaround were Sydney, Melbourne and Brisbane which reported it’s first rise since November and IS expected to continue lifting. Despite the drop in the past 2 years, Sydney (18.4%), Melbourne (23.5%), Hobart (35.9%) and Canberra (22.3%) have all documented 5 year growth of over 20%. Australia’s 3rd biggest market Brisbane which has historically followed the value rises of Sydney and Melbourne has only reported a 7.2% 5 year growth and is starting to attract attention in anticipation of a historically inevitable catch up.