Non-Capital City Housing Markers A Real Mixed Bag
Earlier this month CoreLogic released their October 2017 home value index results, in this week’s Pulse we focus on what these results look like across the regional housing markets.
According to the CoreLogic home value index results for October 2017, dwelling values across the combined regional housing markets of the country were unchanged over the month. While dwelling values were flat, they fell by -0.1% over the quarter and were 4.9% higher over the past 12 months. The quarterly decline in values was the largest fall since the three months to October 2014 while the 4.9% annual change was the lowest annual change since February 2017.
While the data indicates that the rate of dwelling value growth is slowing, there are some differences occurring across the regional markets of the states and territories.
Dwelling values increased by 0.2% in October 2017 to be 0.7% higher over the three months to October 2017 and 9.7% higher over the past year. Monthly, quarterly and annual growth rates are slowing however, regional NSW has recorded faster annual growth than Sydney over the past two months.
The 0.3% increase in values in October was the greatest monthly increase since April of this year. Over the past three months, values are -0.3% lower while over the past year they have increased by 4.4%. At 4.4% annual growth, the regional areas of Vic are growing at a much slower pace than Melbourne where values are 11.0% higher over the year.
Dwelling values were -0.2% lower over the month however, they fell by -0.5% over the quarter and were 1.6% higher over the past year. Regional Qld dwelling value growth has continued to underperform the quite moderate growth in Brisbane as regions outside of the south-east corner continue to drag on the performance.
Dwelling values fell by -0.5% over the month, were -2.1% lower over the quarter and -0.9% lower over the past year. While dwelling values are increasing at a moderate pace in Adelaide, outside of the capital city housing demand is much weaker leading to value falls.
While Perth values have not fallen for two months, in Regional WA, dwelling values fell -0.4% in October, they were -1.4% lower over the quarter and -3.0% lower over the year. This indicates that regional WA values have fallen at a slightly faster pace than Perth values over the past year.
Values were 0.3% higher in October 2017, -0.4% lower over the three months to October and 5.4% higher over the year. Although annual value growth was much slower than in Hobart, it has accelerated from an increase of 1.7% a year ago.
Values rose by 1.1% over the month to be 0.7% higher over the past three months and 1.3% higher over the year. Although growth is still minimal, it is significantly greater than the -5.7% fall in Darwin values over the year.
Growth in regional dwelling values generally continues to lag capital cities however, in most states the growth in values of regional property markets are generally stronger than they have been over recent years.