National home values grow for 21st consecutive month
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The news: National home values climbed 0.3% in October, marking the 21st consecutive month of growth on CoreLogic's index.
However, property prices are slipping in some capitals including Sydney, Canberra, Darwin and Melbourne and overall growth is decelerating.
The numbers: In the 12 months to October, property values have risen 6%.
In October, property values increased 1.4% in Perth, 1.1% in Adelaide, 0.8% in Hobart and 0.7% in Brisbane. They fell 1% in Darwin, 0.3% in Canberra, 0.2% in Melbourne and 0.1% in Sydney. The capital cities increased 0.2%, while the regions were up 0.6%.
National rents increased 0.2% over October, marking a slight strengthening on the preceding three months. Annual rental growth is 5.8%. Over the past three months, asking rent has been declining for apartments in Sydney, Melbourne, Brisbane, Hobart and Canberra.
CoreLogic's report indicates that the weak trend in new housing construction will limit any material downturn of housing values.
What they said: "A combination of less borrowing capacity and broader affordability challenges, as well as a higher-than-average share of investors and first home buyers in the market is the most likely explanation for stronger conditions across the lower value cohorts of the market," CoreLogic research director Tim Lawless said.
“The past three months has seen the lowest quartile either record a higher growth rate or smaller decline relative to the upper quartile or broad middle of the market across every capital city except Canberra.”
The source: CoreLogic Home Value Index
