April 2024 Housing Market Trends: Home Values Rise Amid Low Supply

The April Home Value Index (HVI) from CoreLogic brings key insights into Australia's housing market, revealing a complex interplay between rising home values, low supply, and market dynamics:

1. Home Values Continue to Rise: Home values rose by 0.6% in April, marking the 15th consecutive month of growth. Mid-sized capitals led this growth, with Perth seeing a 2.0% increase, followed by Adelaide at 1.3% and Brisbane at 0.9%. This continued growth, despite higher interest rates and inflation, underscores the resilience of Australia's housing market.

2. Affordable Housing Markets Leading Growth: Lower quartile markets and units have shown stronger growth compared to upper quartile and house markets in each city. This trend highlights a preference for more affordable housing options, reflecting the current economic climate and housing affordability concerns.

3. Regional Housing Markets Show Strength: Regional markets have shown a slightly stronger quarterly growth rate than their capital city counterparts in recent months. This shift suggests growing interest in regional living, likely driven by affordability, lifestyle choices, and remote work opportunities.

4. Sales Trends: Home sales appear to have peaked in November of last year, indicating a shift in buyer behavior or market conditions. This could reflect changing demand patterns or the influence of higher interest rates on purchasing decisions.

5. Rising Rents: Rents nationally increased by 0.8% in April, with most cities recording quarterly rental growth exceeding 2.0%. Perth led with a 3.9% increase over the past three months, reflecting continued demand for rental properties. The national trend of rents rising faster than home values since November last year has supported a rise in gross rental yields.

6. Supply-Demand Imbalance: The mismatch between available supply and demonstrated demand continues to skew markets in favor of sellers. This imbalance is a significant factor contributing to the sustained growth in home values and rental yields.

Market Outlook: Interest Rates and Inflation

Looking ahead, higher interest rates and inflation pose challenges for the housing market. These factors could dampen demand or slow growth, particularly for buyers relying on loans. However, limited supply and continued demand may continue to support the market, contributing to growth in home values and rents.

Contact Wealthcorp Finance for Housing Market Support

Navigating the current housing market can be complex, with various factors influencing buying, selling, and renting decisions. For guidance on financing options or navigating market trends, reach out to Wealthcorp Finance. Our team specializes in providing tailored solutions for individuals and businesses, helping you make informed decisions and achieve your financial goals. Contact us today!