After falling -9.1% between May 2022 and February 2023, Australian housing values look to have bottomed out, posting a second consecutive monthly rise. 

CoreLogic’s national Home Value Index (HVI) increased by half a percent in April, following a 0.6% lift in March to be 1.0% higher over the past three months.

Angus Raine, Executive Chairman Raine & Horne, said, “This is fantastic news and once again shows the resilience of Australia’s favourite asset class. 

“This result also runs in the face of predictions at the start of the year.”

Several “experts” predicted property prices would slide to around 15-20% of their peak value by the September 2023 quarter. 

Sydney increased 1.3% in April and is leading the positive turn in housing conditions, with dwelling values rising each month since February. 

Sydney values are now 3.0% higher than the recent trough recorded in January. In further evidence that a growth trend has emerged, the four largest capital cities all recorded a rise in housing values over the rolling quarter.

Over the past two months, strong growth saw Perth recover all its recent declines and is now growing at 1.3% annually. Regional SA and Regional WA also recorded new cyclical peaks.

According to CoreLogic’s Research Director, Tim Lawless, it is becoming increasingly clear that the housing market has moved through an inflection point.  

“Not only are we seeing housing values stabilising or rising across most areas of the country, a number of other indicators are confirming the positive shift. Auction clearance rates are holding slightly above the long run average, sentiment has lifted, and home sales are trending around the previous five-year average,” he said.

The April Raine & Horne Monthly Property Report also shows that real estate is returning to form, with appraisals up by 30% since January, while listings have jumped by 43%. On the demand side, the number of groups attending open-for-inspections (OFIs) is also up by 23%. 

At the same time, the latest data from researcher Roy Morgan indicated that 19% of Australians (up 1ppt) say their families are ‘better off’ financially than this time last year.

Angus Raine added, “As interest rates stabilise, the property drums will beat louder with appraisals up and more buyers at open for inspections. This activity bodes well for the late autumn and winter property markets.