New data from CoreLogic has revealed growth in housing values across every capital city for the month of January.
According to the CoreLogic Hedonic Home Value Index, released on Monday, the first month of 2020 saw the national housing value index increase by 0.9 per cent.
Commenting on the results, CoreLogic head of research Tim Lawless noted that although there is an “apparent recovery across every GCCSA (Greater
Capital City Statistical Area) of Australia, the speed of growth has lost some momentum over recent months”, with the national dwelling index slowing from a recent monthly peak of 1.7 per cent in November, to 0.9 per cent in January.
“Seasonal effects provide some explanation for the slowdown. The CoreLogic seasonally adjusted hedonic index implies the time of year shaves about 1 basis point of growth from the December reading and 2 basis points from the January reading," Mr Lawless explained.
“Factoring in the seasonal affect, the latest results indicate a reduction in the speed of growth across most markets, especially for Sydney and Melbourne where affordability constraints are once again becoming more pressing. As advertised stock levels rise over the early part of the year, we could some further dampening of growth rates.”
Nationally, housing values recovered 6.7 per cent since finding a floor in June last year, however CoreLogic’s national index remains 2.2 per cent below the October 2017 peak, Mr Lawless added.
“With housing values rising at the quarterly pace of 3.7 per cent, we are likely to see a nominal recovery in the national home value measure within the next two to three months,” he said.