CoreLogic has released its official dwelling value results for April (unofficially released on MB on Friday), which recorded 1.8% growth nationally, with every market – capital cities and regional – recording strong growth:
However, CoreLogic’s research director, Tim Lawless, contends that the pace of gains will slow in the months ahead as inventory levels rise and affordability constraints dampen housing demand:
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Overall, although conditions remain strong, there are mounting signs the housing market has moved through a peak rate of growth. Growth conditions over the past six months have been unsustainable and are now succumbing to a gradual slowdown in demand due to worsening affordability constraints, a rise in fresh inventory, higher levels of new detached housing supply and less government stimulus.
We are expecting housing values will continue to rise throughout 2021 and into 2022, albeit at a gradually slower pace…
After recording the strongest price growth since 1988 in March, it was always inevitable that Australia’s housing market would slow.
Nevertheless, 2021 is still shaping up to be one of the strongest years for dwelling value growth on record.
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