Property experts did not expect positive news from the new data released by CoreLogic RP Data last Monday. Hence, they were pleasantly surprised when it pointed to a bullish outlook for Australia’s housing market.
According to CoreLogic RP Data’s Hedonic Home Value Index, property prices were up 2.4 per cent over the three months to April, with growth in all capital cities except Hobart.
Cameron Kusher, a research analyst from CoreLogic RP Data, said that it was a “really, really strong result,” for Sydney’s 3.9 per cent increase in dwelling values, but admitted that there is still a slowdown in the market.
“Even when you look at listings data, there seems to be a level of confidence in the market there,” he said. “We don’t think it’s going to hold or continue, but over the last three months after a pretty weak last quarter of last year, there seems to be a renewed level of confidence.”
NAB group chief economist Alan Oster agreed, attributing the strong results to owner-occupiers who were “taking up the slack of the slowing rate of investors” in terms of home loans. Low interest rates and the belief in the value of housing as an investment are also driving the market.
Meanwhile, AMP Capital chief economist Shane Oliver cautioned that this might not mean an acceleration in the market.
“I’d be cautious about reading too much into these numbers,” he said. “We’re still on track for a loss momentum but today’s numbers are a bit surprising.”
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