The CoreLogic July 2019 home value index results delivered another sign that housing conditions are stabilising following improvements in credit availability and lower mortgage rates, with national dwelling values flat over the month, supported by a subtle rise across most of the capital cities.
According to CoreLogic head of research Tim Lawless, a number of factors are supporting the turnaround in housing conditions, however lower mortgage rates, improved access to credit, a boost in housing market confidence post the federal election and recent tax cuts are likely the primary drivers. Other factors include improvements in housing affordability and a reduction in advertised supply levels. “All of which is creating a stronger selling position for vendors,” he says.
The primary drivers for the turnaround in housing market
performance were Australia’s two largest cities, Sydney and
Melbourne, where values have ticked higher over the past two months, taking values 0.3% off their floor in Sydney and 0.4% higher in Melbourne. The 0.2% lift in Brisbane values was the first month-on-month rise since November last year.