Spring 2019 is shaping up to be a bumper season. Home values are rebounding across the nation as buyers take advantage of record low interest rates and easing lending conditions.
Spring is traditionally a time of regrowth, and we’re certainly seeing that in the property market right now.
Figures from CoreLogic show the market recovery is gathering momentum, with home values rising 0.8% nationally in August 2019.
As a sign of renewed buyer confidence, auction clearance rates are topping 70%. It’s a big uptick on the clearance rates of 52% seen this time last year.
What’s driving the upswing?
A number of factors are driving the upbeat spring market.
Spring is usually a peak season for real estate, and this year Aussies are enjoying a triple treat of lower interest rates, tax cuts and an easing in lenders’ credit policies, which has boosted home buyers’ borrowing power.
This is backed by housing prices that are a lot more affordable today than they were two years ago.
In Sydney and Melbourne for instance, values are down 13.3% and 9.5% respectively from the market peak, giving buyers a lot more bang for their buck.
Here’s how markets are shaping up around the nation.
Brisbane home values climbed 0.2% in August, and despite values losing 2.5% since the market peak, the city’s property market has achieved 5-year gains of 7.2%.
Regional Queensland is seeing some strong price growth, particularly in the Mackay region where values have rebounded 3.0% in the last year.
New South Wales
Sydney home values have been on the rise for three consecutive months now, delivering total quarterly gains of 1.9%.
It takes the 5-year price gains for Sydney to 19.2%, and that’s allowing for a major market correction.
Regional markets have performed well too. Outside of Sydney, values have recorded 5-year gains of 22.5%. Neighbourhoods that have enjoyed strong gains over the last quarter include Newcastle, Lake Macquarie and Richmond-Tweed on the north coast.
In Melbourne, values have jumped 1.8% over the last quarter, taking 5-year gains to a massive 24.8%. The city is seeing auction clearance rates of around 76%, compared to 54% in spring 2018.
Elsewhere in Victoria, home values have soared 21% over the past five years. Warrnambool and the south west region is the top performer, with values rising 1.9% over the last 12 months.
The national capital has managed to avoid the major market corrections seen in Sydney and Melbourne, achieving price of growth of 1.2% over the last year. This has seen Canberrans notch up property price gains of 22.9% in the last five years.
The Tasmanian market has dominated the leader board in recent years. Values in Hobart have skyrocketed by 37.2% in just five years.
It seems Australians can’t get enough of Tasmania’s affordable housing, with regional areas of the state also scoring outstanding gains. Values have climbed 23.6% over the 5-year period, and in the northern city of Launceston the market has gained an extra 3.8% in just 12 months.
Adelaide tends to be a steady performer for residential housing, and home values have seen a healthy 9.9% rise over the last five years.
Across metro Adelaide, property prices rose 2.38% over the past year, with the best performers being Unley, Rosewater and Torrensville.
Perth buyers are taking advantage of some of the best affordability seen in years. The city’s median home value is now an affordable $437,000, and this has driven a 3% rise in house sales and a 27% jump in apartment sales in mid-September 2019.
As a further sign of a more active market, auction clearance rates in Perth reached 60% in September–well above the 41% seen a year ago.
Good news for investors–Perth currently has 17% fewer rental listings compared to 12 months ago.
Home buyers in Darwin can take advantage of excellent buying power right now, with values down 30% from the market peak.
According to CoreLogic, the 3-month trend for Darwin suggests improving conditions.
As home buyers tap into the exciting possibilities offered by more affordable property markets, low rates and a potential uptick in borrowing capacity, now is the time to speak with your local Aussie Broker to see how you can achieve your property goals.