- Home prices have soared over the past month, booming at the fastest rate in 32 years
- According to the latest CoreLogic national home value index, values have increased 2.8 per cent over March
- Sydney led the pack for capital gains in March, with values surging 3.7 per cent over the month and 6.7 per cent higher over the first quarter of the year
- Sydney dwelling values are now 2.6 per cent higher than their July 2017 peak
- Despite rapid increases in house prices, the unit market is lagging behind, with unit values only up 1.9 per cent in March
Home prices have soared over the past month, booming at the fastest rate in 32 years.
According to the latest CoreLogic national home value index, values have increased 2.8 per cent over March, the fastest rate of appreciation since October 1988.
These exceptionally strong growth conditions remain broad-based, with values rising by at least 1.4 per cent across each of the capital cities and ‘rest-of-state’ areas over the month.
Sydney led the pack for capital gains in March, with values surging 3.7 per cent over the month and 6.7 per cent higher over the first quarter of the year.
“The last time Sydney housing values recorded a quarterly trend this strong was in June/July 2015,” CoreLogic Research Director Tim Lawless said.
“Following this brief surge, the pace of growth rapidly slowed as limits on investor lending kicked in to slow the market.”
Sydney dwelling values are now 2.6 per cent higher than their July 2017 peak, according to CoreLogic.
To put this price into context, through to May 2019 Sydney witnessed a 14.9 per cent drop in values and the further 2.9 per cent fall in the COVID-19 downturn.
The research group said similarly, Melbourne housing values have recovered from the 11.1 per cent fall between 2017 and 2019, and the 5.6 per cent drop in values through the worst of the COVID-19-related downturn to set a new record high in March.
Despite rapid increases in house prices, the unit market is lagging behind with unit values only up 1.9 per cent in March.
“Despite the underperformance, unit markets have turned a corner, with Sydney recording two consecutive months of rising values, while the Melbourne unit market has seen values consistently rising since October last year, with the trend accelerating over recent months,” Lawless said.
Additionally, for the first time in a year, growth in capital city housing values outpaced the regional markets, a 2.8 per cent lift compared to 2.5 per cent.
“Housing values in regional areas are 11.4 per cent higher over the past year, demonstrating the earlier stronger growth trend; capital city values are now 4.8 per cent higher on an annual basis with the acceleration in growth evident in March,” Lawless said.
In March, Victoria was the only state where regional housing values rose at a faster pace than their capital city counterparts.