As Australia’s housing market continues its graceful ballet, with a delicate 0.6% rise in April, it seems to be performing a dance that not everyone is keen on joining.
While some might see CoreLogic’s most recent housing data for April as a cause for applause, others view the data through a less celebratory lens, especially those finding the ticket price to homeownership increasingly steep.
Perth is currently leading the choreography with a notable 2.0% uptick, with Adelaide and Brisbane following the rhythm with gains of 1.3% and0.9%, respectively. Sydney, on the other hand, seems to be moving to as lower, more measured beat with a 0.4% increase, while Melbourne appears to have momentarily paused to tie its shoelaces with a slight dip of 0.1%.
Interestingly, the dance floor is most crowded at the more affordable end of the market. Here, the energy is palpable, as smaller units are outshining their larger house counterparts in popularity. It’s a reminder that in the real estate rumba, sometimes the smaller moves make the biggest impact.
Turning our gaze to the regional stages, we see Western Australia taking the lead with a lively 5.3% quarter-on-quarter increase. Regions in South Australia and Queensland aren’t far behind, showcasing their own robust performances. This diversity in market dynamics could perhaps be seen as a form of jazz, where each region hits its own notes.
The volume of home sales has gently tapered off since last November, although they still hum along at a tune 8.6% higher than last year. It seems the music is still playing for those already on the dance floor, albeit with a few less spins and twirls.
On the subject of rental yields, they’ve tiptoed up to a national average of3.75%, the highest since the pre-pandemic days of October 2019. But before landlords start their victory tap dance, it’s worth mentioning that the average investor mortgage rate of around 6.7% might still leave some dancing on a tightrope between costs and gains.
Looking ahead, it seems the band will play on as long as the mismatch between housing supply and demand continues. This ongoing performance is sustained by an undercurrent of insufficient housing stock, which keeps the market’s tempo upbeat despite broader economic slowdowns and the high notes of interest rates.
While the market’s 15th month of growth is not great news for those trying to buy their first home, opportunities abound in terms of government financial assistance. Whether you’re a hopeful first-time buyer, a concerned observer, or an intrigued economist, the housing market’s evolving soundtrack promises something for everyone, though it pays to listen carefully and talk regularly to your local First National Real Estate agent.
Ask us about our comprehensive financial assistance guide. It wraps up all the grants, stamp duty waivers, concessions, and different forms of financial support available to buy your first home in each state and territory of Australia.
Monthly change in capital city home values
