VALUES INCREASE IN JUNE, BUT AT SLOWER RATE
Australian housing values moved through a fourth month of recovery with CoreLogic’s national Home Value Index (HVI) rising 1.1% in June, decelerating slightly from the 1.2% gain recorded in May.
Since finding a floor in February, the national measure of housing values has gained 3.4%, however, the market remains -6.0% below peak levels recorded in April 2022. That is the equivalent of the median dwelling value still being -$45,771 below a peak of $768,777.
Every capital city except Hobart (-0.3%) saw dwelling values rise in June, with CoreLogic’s research director, Tim Lawless, noting that Sydney continues to lead the cycle.
“Sydney home values increased another 1.7% in June, taking the cumulative recovery since the January trough to 6.7%. In dollar terms, Sydney’s median housing values are rising by roughly $4,262 a week,” he said.
Lack of supply the biggest issue
A lack of available supply continues to be the main factor keeping upwards pressure on housing values, Mr Lawless said. “Through June, the flow of new capital city listings was nearly -10% below the previous five-year average and total inventory levels are more than a quarter below average. Simultaneously, our June quarter estimate of capital city sales has increased to be 2.1% above the previous five-year average.”
Although housing values continue to record a broad-based upswing, the pace of growth across most capitals eased in June. “A slowdown in the pace of capital gains could be a reflection of a change in sentiment as interest rate expectations revise higher,” Mr Lawless said. “Higher interest rates and lower sentiment will likely weigh on the number of active home buyers, helping to rebalance the disconnect between demand and supply.”
Regional prices still lifting
Regional housing values have also trended higher, albeit at a slower pace relative to the capitals. The combined regionals index also recorded a fourth consecutive month of growth, taking housing values 1.2% higher than the recent low in February.
“After regional population growth boomed through the worst of the pandemic, internal migration trends have normalised over the past year, resulting in less housing demand across regional markets. Additionally, housing demand from overseas migration is skewed towards the capital cities rather than the regions.”
Despite the recent uptick, most regions continue to see housing values below their recent cyclical highs. Hobart housing values have recorded the largest cumulative decline, holding -12.9% below the record high in May last year. Across the capital cities, Perth is the only capital where home values are at record highs, having recovered from the relatively mild -0.9% decline through the downturn. Adelaide home values are only -0.3% below record highs and likely to reach a new high point in July.
Across the regional markets, Regional NSW is recording the largest drop from peak through to the end of June, with values down -9.6%, followed by Regional Victoria (-8.4%) and Regional Tasmania (- 7.2%). At the other end of the spectrum, dwelling values in Regional SA and Regional WA, recorded new cyclical highs in June.
Monthly change in capital city home values
MONTHLY ANNUAL
Sydney p 1.7% q 5.1%
Melbourne p0.7% q 5.7%
Brisbane p 1.3% q 8.2%
Adelaide p 0.9% 0%
Perth p0.9% p 2.5%
Hobart q0.3% q 12.7%
Darwin p0.5% q 1.0%
Canberra p0.4% q 8.8%
National p 1.1%
5 STRATEGIES TO ELEVATE YOUR HOME’S VALUE
Boosting your home's value doesn't necessarily require an extensive renovation budget. Here are the top 5 strategies homeowners can use to enhance their property's appeal.
Update the Kitchen: As the heart of a home, modernizing your kitchen can significantly increase your home's worth. Simple upgrades like new countertops or energy-efficient appliances can make a big difference.
Revamp the Bathroom: A clean, contemporary bathroom is a game-changer. Consider upgrades like a new vanity or adding a fresh coat of paint to make your bathroom shine.
Enhance Curb Appeal: First impressions matter. Fresh landscaping, a well-maintained lawn, and a clean exterior can draw potential buyers in.
Efficient Home Improvements: Investing in energy-efficient upgrades, such as insulated windows or a new HVAC system, can save future costs and appeal to eco-conscious buyers.
Create a Functional Floor Plan: Open, flexible spaces are in high demand. If possible, consider knocking down non-structural walls to create a spacious, inviting environment.
Remember, the goal is to make your home appealing to a broad range of potential buyers. Keep changes neutral and versatile to ensure maximum return on investment.
IS WINTER A GOOD TIME TO SELL YOUR HOME?
When it comes to selling a property, many homeowners consider the timing as a crucial factor. While the spring and summer months are traditionally known as the peak selling season, the question remains: Is winter a good time to sell your home?
Despite the common perception that winter might not be ideal for selling, there are certain advantages and unique opportunities that this season brings. In this article, we will explore the pros and cons of selling your home during the winter months.
One of the significant advantages of selling in winter is the reduced competition in the market. As many sellers tend to wait for the warmer months, the inventory of available homes decreases during winter. With fewer properties on the market, your home may have a higher chance of standing out and attracting serious buyers. Moreover, motivated buyers who are actively searching during this period are often more committed and serious about purchasing a property, increasing the likelihood of a successful sale.
Another advantage of selling in winter is that your home's true character can shine through. Winter can create a cosy and inviting atmosphere, especially if you take careful advantage of staging. Think warm lighting, a crackling fireplace, and tasteful winter decorations. By highlighting these elements, you can create an emotional connection with potential buyers, who may envision themselves enjoying the comforts of your home during the winter season.
Furthermore, winter allows you to showcase your property's resilience and functionality. Buyers can see firsthand how well your home handles the colder months, such as its insulation, heating systems, and overall energy efficiency. By emphasising these features, you can position your home as a comfortable and cost-effective choice, potentially attracting buyers who value these aspects.
However, it is important to consider the potential challenges that come with selling your home in winter. One obvious obstacle is the weather. Snow, rain, and colder temperatures can make it more challenging to keep your home in pristine condition for showings. However, with proper maintenance and
regular cleaning, you can ensure that your property remains presentable even in inclement weather.
Additionally, winter days are shorter, which means fewer daylight hours for showings. This limitation can affect the number of potential buyers who can visit your property during weekdays. However, you can make the most of the available daylight by scheduling showings during midday hours and ensuring your home is well-lit, both inside and outside, to create a warm and welcoming atmosphere.
Another consideration is the potential impact on pricing. While the reduced inventory can work in your favour, there may also be fewer comparable properties for buyers to reference, making it more challenging to set an accurate asking price. Consulting with a knowledgeable real estate agent can help you determine the optimal pricing strategy for your home during the winter market.
Ultimately, the best time to sell is when you and your home are ready.
While the spring and summer months may be the traditional peak selling season, selling your home during winter can present unique advantages. Reduced competition from other people selling their homes, the ability to showcase your home's cosy atmosphere, and the opportunity to highlight its resilience and functionality are all compelling reasons to consider listing your property during the winter months.
However, it is essential to be mindful of potential challenges, such as weather conditions and shorter daylight hours. By preparing your home accordingly and seeking professional guidance, you can maximise your chances of a successful sale, regardless of the season.
Talk to a member of our sales team today and we’ll share our Home Seller’s Guide with you. It is a very useful companion for people who are getting ready to sell their home.