The worm is undoubtedly starting to turn for real estate, with the latest data from CoreLogic indicating that Australia’s favourite asset class is starting to cycle back into form. 

According to the research house, the national index declined a minuscule -0.14% over February, the smallest monthly fall since May 2022 (-0.13%), when rate hikes commenced.

A 0.3% rise in Sydney dwelling values was the most significant driver of the national deceleration. However, the loss of downward momentum was broad-based. Darwin (-0.3%) was the only capital city to record a steeper monthly fall in February, albeit from relatively flat conditions previously. Every other capital city except Hobart (-1.4%) saw housing values fall by less than half a per cent over the month.

CoreLogic’s research director, Tim Lawless, said the stabilisation in housing values over the month coincides with consistently low advertised supply levels and a rise in auction clearance rates.

Moreover, many property owners around Australia are recognising that market conditions are improving. In Tasmania, for example, research from Raine & Horne shows that property appraisal doubled in February as vendors clamoured to get a sense of the market value of their properties. Further north and requests for appraisals jumped by more than 16% last month, while listings increased by 3% in Victoria, according to Raine & Horne. 

Auction clearance rates also bounced back through February, with the capital city weighted average reaching the high 60% range through the second half of the month, while Sydney clearance rates rose to above 70% in the week ending 19 February, the first time since February 2022.

Angus Raine, Executive Chairman Raine & Horne said the improving news augurs well for real estate markets around Australia.

“It’s fantastic that the Sydney market recorded an increase in values and auction clearance rates in February despite a ninth straight increase in the official cash rate.

 “I’m also buoyed by improving appraisals in some states and territories – appraisals are usually a yardstick of real estate sales strength two to three months down the track.”

Meanwhile, on the demand side, a robust increase in buyer activity in February presents vendors with the opportunity to land a strong autumn sales result, according to research from Raine & Horne. Nationally, there was a 15% surge in groups attending open-for-inspections (OFIs) between January and February 2023.

“OFIs are a great bellwether for sales in April and May,” said Angus Raine.

 If you’re considering a sale this autumn, contact your local Raine & Horne agent today for an obligation-free appraisal.