The Australian housing market is showing signs of resilience despite a challenging period. The momentum in the downturn has been easing since September 2022, with value falls virtually flatlining in February. In fact, Sydney recorded its first month-on-month rise in housing values since January last year, with other major cities following suit. This positive trend has continued in the first half of March with CoreLogic’s Daily Home Value Index showing a 0.3% increase across the five largest capitals.
Interestingly, this positive momentum has occurred in tandem with a persistently low flow of new listings coming onto the market. Capital city listings over the past four weeks were nearly 20% below the previous five-year average, a central factor in keeping a floor under housing prices despite a drop in demand.
Furthermore, the surge in permanent and long-term migrants may also be contributing to the stronger market conditions. While most of the demand from overseas migration is likely to flow into the rental market, the tight vacancy rates may be pushing a higher than normal portion of long-term or permanent migrants to choose buying over renting.
It’s important to note that the housing market is still facing some downside risk, with potential further interest rate hikes and a likely weakening of economic conditions through the middle of the year. However, with the positive momentum and persistent low supply, now may be an opportune time for potential buyers to consider entering the market.
Taking a closer look at our market place it is important to note that the medium housing prices for each of the suburbs our office services, such as Epping, Eastwood, Carlingford, Ermington, Dundas Valley and North Epping, continue to hold their medium values and remains blue-chip in the eyes of buyers. The most notable sales results being that of 19 Fonti Street in Eastwood and 5 Rosebank Avenue in Epping which both sold for $3,070,000 and $2,900,000 respectively, and reflect the continued strength of the premium market.
The next few months will be critical in understanding whether the housing market is indeed moving through an inflection point or if it is just the eye of the storm. If you’re thinking about buying, it may be worth considering taking action sooner rather than later.
If you would like receive an updated market appraisal and tailored marketing strategy for your property, I invite you to contact me.
Written by Peter Hunt
0434 821 219