The property market has made a dramatic comeback these past few months and if price growth doesn’t slow down we could be seeing new record values being set in just a few month’s time.
An analysis from CoreLogic has revealed that if the current rate of growth continues then national dwelling values could reach a new record high within just six months.
Data from CoreLogic’s Home Value Index shows that as it stands, national dwelling values were 5.7 per cent below their peak at the end of October.
Values have been rising quickly at 2.9 per cent over the last quarter though (or almost 1 per cent a month), meaning it would only take approximately 6 months of similar growth for the market to eclipse any losses experienced from the downturn.
Sydney recovery slightly slower than elsewhere
The Melbourne property market is predicted to be the first city to see a full market recovery, however Sydney shouldn’t be too far behind.
Sydney saw more dramatic falls during the downturn, so has more to gain, but it still is on track to see a full recovery within 6 months, or around April next year.
“Housing values are trending higher rapidly, up 5.0 per cent over the past three months, however the correction was more substantial across Sydney, with housing values falling by 14.9 per cent from peak to trough, “ said CoreLogic head of research Tim Lawless.
Sydney dwelling values were still 10.4 per cent below their 2017 peak at the end of October.
A rise in housing values could be a double-edged sword – while it’s great news for those who are already in the property market, it does make it harder for first home buyers to break into it.
Nobody has a crystal ball though, so we will have to wait and see what’s in store for the property market over the coming months. Watch this space.