In light of the latest CoreLogic Hedonic Home Value Index (HVI) for October 2023, there’s a lot to digest for homeowners across Australia’s major capital cities.
One of the most notable shifts in the marketplace is the new weighting method added to the HVI model. This alteration enhances the recency factor, placing a higher emphasis on recent sales to identify pivotal moments in the market more swiftly. This is especially important for homeowners who are contemplating whether it’s the right time to sell.
The HVI will also transition to a revisionary model, providing a 12-month rolling window of revised results released on the first working day of each month. For homeowners, this update offers a more dynamic and up-to-date understanding of property values, essential for making educated decisions about when to make significant changes like renovations or even selling your property.
Now, let’s take a snapshot of what’s happening in the residential property market across Australia’s largest capital cities:
Sydney: After years of growth, the market seems to be plateauing, but it’s far from a decline. High-demand suburbs remain robust, and the added weight to recent sales in the HVI could prove beneficial for homeowners in these areas.
Melbourne: There’s a slight uptick in market activity, especially in the outer suburbs. With interest rates still relatively low, it’s an opportune time for existing homeowners to consider upsizing or making value-adding improvements to their property.
Brisbane: This sunny capital continues to show promise, with steady, albeit slower, growth rates. Suburbs near the CBD are gaining popularity, but it’s still a competitive market for buyers as downsizers and retirees moving from the south compete for listings.
Adelaide: The market remains stable, but it’s a slow and steady race. For homeowners not in immediate need to sell, holding onto their properties a bit longer could be beneficial.
Perth: After years of being in the doldrums, the Perth market is starting to show signs of life. If you’ve been holding onto a property, now might be a good time to consider your options carefully, as the market is swinging in favour of sellers.
Canberra: The market is strong, and demand for property remains high. If you’re a homeowner in Canberra, sitting tight might yield you even more value for your property in the coming months.
Regional markets are continuing to lag the capitals with every ‘rest of state’ region recording weaker growth conditions relative to their capital city counterpart over the September quarter. At a broad level, the combined regional markets recorded a 1.1% rise in dwelling values through the September quarter which was less than half the gain across the combined capital city market (2.5%).
Most regional markets are also showing relatively low advertised supply levels which have been enough to place some upwards pressure on values. However, regional Victoria and regional Tasmania are exceptions, where advertised supply is above average and housing values trended lower over the quarter.
Monthly change in capital city home values