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The CoreLogic Home Value Index for January shows dwelling values are 0.7 per cent higher across the combined capital city regions, with Sydney, Melbourne and Hobart leading the gains.
This 0.7 per cent rise is lower than the 1.4 per cent increase recorded in December, but higher than the readings for October and November last year, which were 0.5 percent and 0.2 per cent respectively.
CoreLogic head of research Tim Lawless said the positive result is broad based, with every capital city except Darwin recording a rise in dwelling values over the month.
The largest month-on-month gains were recorded in Hobart (1.4 per cent), Sydney (1.0 per cent) and Melbourne (0.8 per cent).
Quarterly dwelling values were up in all capital cities as well, with Hobart in the lead, up 5.8 per cent over the three months. Sydney (2.7 per cent) and Melbourne (2.4 per cent) also posted strong increases over the quarter.
The combined annual growth rate was 10.7 per cent, marginally lower than the 10.8 per cent over the previous twelve-month period.
Sydney was the standout at 16.0 per cent. Since the growth cycle commenced in June 2012, Sydney dwelling values have increased by a cumulative 70.5 per cent.
Hobart recorded the highest quarterly capital gain at 5.8 per cent, taking its annual capital gain to 7.8 per cent.
“While the growth trend in smaller cities such as Hobart can show higher levels of volatility, clearly the Hobart housing market is now well into its growth cycle,” Mr Lawless said.
“Strong housing market conditions are being driven by positive affordability of housing, as well as improving economic conditions and stronger migration trends.”
Mr Lawless said the rise in dwelling values in Perth and Darwin hint at a bottoming of the downturns in those cities.
He said Perth dwelling values were 2.1 per cent higher over the past three months and Darwin values were up 1.8 per cent.
“Buyers still have a great deal of leverage in these markets, with listing numbers remaining high, long selling times and high rates of discounting,” Mr Lawless said.
“However, in another indication that conditions may be moving through the bottom of the cycle, transaction volumes moved higher across both markets prior to the seasonal downturn in December and January, whilst the average selling time reduced from previously higher levels.”
But he did caution that with economic and demographic conditions remaining weak, a full recovery is likely to be a slow process.
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