CoreLogic has released its full dwelling value results for November, with values nationally rising 1.3% over the month and 22.2% year-on-year:
Australia’s regions led the way, recording 2.2% growth in November versus 1.1% growth across the capital cities.
Over the year, the regions recorded 25.2% growth versus 21.3% growth across the capital cities.
Commenting on the results, CoreLogic’s Director of Research, Tim Lawless, noted that momentum is beginning to wane due to a number of factors:
Although values are continuing to rise, the November result was the softest outcome since January when values rose 0.9%. Since a cyclical peak in the rate of growth in March, when housing values rose at 2.8%, there has been a notable trend towards milder price growth.
Tim Lawless, CoreLogic’s research director, says the slowdown in the pace of growth is due to a number of reasons. “Virtually every factor that has driven housing values higher has lost some potency over recent months. Fixed mortgage rates are rising, higher listings are taking some urgency away from buyers, affordability has become a more substantial barrier to entry and credit is less available”…
Advertised inventory remains low but is now rising across most regions….
Fixed term mortgage rates are rising which could act as a disincentive for some buyers…
Housing affordability is becoming more challenging from month to month…
Tighter credit policies could also work to slow housing activity….
The full release is available here.