Australian home prices up 0.4% in January

The news: Australian housing saw its 12th straight month of value gains in January, according to CoreLogic's national Home Value Index, which climbed 0.4% month on month.

The numbers: The latest rise builds on 0.3% increases in both November and December last year. While Perth, Adelaide and Brisbane house prices increased by 1% or more in January, the value of dwellings in Melbourne (-0.1%), Hobart (-0.7%) and Canberra (-0.2%) all fell. Sydney prices rose 0.2%. CoreLogic said that overall house values continued rising at a faster rate compared to unit values, with the gap between median capital city house and unit values rising to a record high of 45.2% in January.

Meanwhile, despite worsening housing affordability, Corelogic estimated that 115,241 dwellings were sold between November and January, 11.9% higher than in the same period a year earlier. There was also a stronger trend in value growth in regional markets (1.2%) compared to the combined capitals index (1.0%) over the three months.

The context: CoreLogic identified Perth as the standout performer among capital cities, with values up 16.7% over the last 12 months as housing demand outstripped supply during the period. Nationally, Corelogic said cost of living pressures, high interest rates, low consumer sentiment and affordability constraints had been offset by high migration and tight rental markets that incentivise renters to transition towards home ownership.