There is now increasing evidence that the Australian property market is now on the road to recovery as highlighted by the latest CoreLogic housing data for October 2019.
The CoreLogic Home Value Index results for last month reveal a 1.2% rise in national dwelling values which is the fourth straight month of rising values.
It is also significant that the October result was the largest month-on-month gain in the national index since May 2015 and follows recent cuts to interest rates as well as a relaxation of lending restrictions by APRA making it easier for home buyers to secure a loan.
The positive October result takes national dwelling values 2.9% above their June 2019 bottom.
This upswing in property values come after a broad-based decline in housing values, with the national index declining 8.4% between October 2017 and June 2019.
Source CoreLogic October 2019
The recent upswing in the property market is most noticeable in Melbourne and Sydney.
During the last three months, the median house price in Sydney has risen by 5% and 5.5% in Melbourne.
One a positive note, the figures also show that other capital cities are also showing signs of improvement.
The rolling three-month change in Brisbane housing values (+1.1%) was the highest since December 2015, Adelaide (+0.1%) posted the strongest rolling quarter since December 2018, while Hobart (+1.0%) and Canberra (+2.4%) recorded the largest three month rise in values since March 2019 and May 2017.
This improving trend is also highlighted by the upswing in tax deprecation reports DEPPRO is now undertaking in these capital cities especially in Brisbane can Canberra.
There was also good news for the long suffering Darwin and Perth property markets. While the downwards trend in Perth and Darwin home values has continued, both markets are showing an improvement in the trend rate of decline. The rolling three-month trend in Perth housing values recorded the smallest decline in fourteen months (-1.7%) and Darwin dwelling values posted a rare monthly rise in October
Overall, these figures indicate that 2020 is shaping up to be one of the most positive years for the Australian property market in some time.
Interest rates are expected to remain low for the foreseeable future and the effective end of the credit squeeze by APRA will enable more property investors to enter the property market during the coming year which will boost the demand for housing.