Median home values around Australia have been mixed across the major cities in 2018. We’re taking a look at recent median home value figures and how property has performed in the year to date.
Property prices around Australia’s major cities have continued to decline in recent months. A recent CoreLogic report revealed that median home values around Australia decreased by 0.1% in late-August. This figure, coupled with continued decreases in median home values in previous weeks made recent decreases in home values hit 0.4%.
In Sydney, prices decreased by 0.1% per week, while the same occurred in Melbourne and Brisbane. There was a more significant drop in median home values in Perth at 0.3%. In contrast, median home values in Adelaide increased by 0.2%. This has been attributed to the generally strong median home values across South Australia in recent times.
Looking at the year to date, house prices increased by 0.7% in Adelaide and by 0.3% in Brisbane. Connected to the positive performance of the market in these states, these increases aren’t surprising as the Adelaide and Brisbane markets haven’t experienced rapid price movements like other cities.
In Perth, Sydney and Melbourne median home values have declined at 5.6%, 2.2% and 1.6% respectively. This brings the decrease in median home values of state capitals across mainland Australia to 2.7% in average weighted terms. The large declines in median home values in Perth, Sydney and Melbourne are a result of corrections from the rapid growth experienced in recent years and increased supply, particularly in Sydney and Melbourne.
Home stocks in Sydney and Melbourne have increased by 22.3% and 12.2% respectively in comparison to supply figures for 2017. New listings figures, however, have declined in recent months at a drop of 7.2% for Sydney and 6.5% for Melbourne. This divergence suggests sellers could waiting for home values to increase again before listing their property for sale.
With these figures in mind, it appears a return to trend growth in Sydney and Melbourne, coupled with an increase in housing supply could be making the property market favourable to buyers. As with any stage in your property investment journey, you should always talk to trusted legal and finance professionals before making changes to or growing your portfolio. Additional consideration of macroeconomic factors such as Australia’s cash rate and the country’s economic performance in comparison to its biggest trading partners can also help you see the bigger economic picture.