November Home Value Index Analysis
December 4, 2019 Corporate News
The release of the November ‘Home Value Index’ by CoreLogic, marked five months of consistent consecutive growth and has taken the national index back into positive annual growth territory for the first time since April 2018.
For the month of November the ‘Home Value Index’ spiked upwards dramatically once again by 1.7%. This fifth consecutive monthly increase was of particular significance due to it being the largest monthly gain on record since 2003.
The Melbourne property market once again drove this monthly rapid recovery, seeing dramatic increases of 2.7% over the month through to the end of December. Over the last three months Melbourne has outperformed any other Australian capital city, with a compiled increase of 6.4%.
Numerous factors are supporting the strong gains in housing values, including a 75 basis points rate cut from the Reserve Bank, an easing in loan lending policy from APRA, and the eradication of uncertainty around taxation reform following the federal election outcome. There is a definite sense of urgency in the market place as buyer demand picks up.
The November clearance rates have also highlighted the strength of the market. Last weekend there was a state-wide clearance rate of 78%, and 72% the week before that. This is significantly higher than the 48% which was achieved on the same week this time last year. Hodges are extremely optimistic about the health of the market and the quality of our team, as a group in the weekend just past we achieved a clearance rate of 100%.
Key takes from the last 3 months:
- Best performing capital city: Melbourne +6.4%
- Weakest performing capital city: Darwin -1.1%
- Highest rental yield: Darwin 5.9%
- Lowest rental yields: Sydney 3.1%