Home values in Australia's capital cities bounced back in April, with latest figures from CoreLogic RP Data showing home values rising by 1.7 per cent across the combined capitals. It comes after a 0.2 per cent increase in March and a 0.5 per cent rise in February.
Sydney led the price gains with a 2.4 per cent increase, followed by Brisbane at 2.2 per cent. Only Hobart and Darwin recorded price falls of 2 and 1.7 per cent, respectively.
But in spite of the better figures last April compared to February and March, head of CoreLogic RP Data Tim Lawless said that the housing market continues to cool down.
"I think the broader trend, when you look at the longer term nature of the data, we are still seeing a moderating trend across the Australian housing market," he said. "So values are still rising, but just not as fast a pace as we were seeing about halfway through last year." The annual growth rate is currently at 7.3 per cent.
According to Lawless, there are several reasons for this moderation, which include affordability and conservative lending practices.
"Affordability in some of the larger cities is becoming quite challenged. We're also seeing lenders becoming more conservative around their lending practices. APRA's very much more vigilant around responsible lending standards as well," Lawless said.
He added, "So even though we're set to see mortgage rates remain really low, and potentially even move lower tomorrow, the fact is, the housing market is showing some slowing trends."
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