CoreLogic released the home value index ratings for October 2017. Looking back on these values, has allowed us to focus on regional housing markets, and the changes taking place there.
According to this new data, dwelling values across combined regional housing markets, were largely unchanged for the month of October. Whilst these dwelling values remained flat, they did fall by 0.1% over the quarters. This said, they were still 4.9% higher over the last 12 months.
The quarterly decline values for dwellings was the largest fall since October 2014. The annual change of 4.9% however, was the lowest annual change since the month of February 2017. The data indicates a slower rate of dwelling price growth than anticipated, with some differences spanning across regional markets in different states and territories.
Let’s have a look at the breakdown for each region.
In October 2017, dwelling values increased by 0.2% to 0.7% higher over the three months before October 2017. They were 9.7% higher over the course of the year. Monthly, Quarterly, and annual growth rates are slower however, with regional NSW recording faster annual growth than Sydney.
Regional Victoria saw the largest increase in monthly values, sat at 0.3%. Over the last three months, values were 0.3% lower. In the last year, they have risen by a total of 4.4% – with regional areas of Victoria growing at a slower pace than the Melbourne area. Melbourne was on average, 11% higher over the entire year.
Regional Queensland saw a decrease of dwelling values, of 0.2% over the past month. A further decrease to 0.5% occurred over the month, although they were 1.6% higher than last year.
Dwelling value growth in QLD has continued to disappoint – as areas such as Brisbane dragged their heels with moderate growth.
Dwelling values in Southern Australia fell by 0.5% in the month of October 2017. They were 2.1% lower over the quarters, and 0.9% lower of the entirety of the year. Whilst dwelling prices increasing at a moderate pace in Adelaide, this has not helped to boost the regional areas surrounding.
Regional values in WA have begun to fall, despite Perth values stalling in recent months. In October 2017, dwelling values fell 0.4%. This value fell to 1.4% over the quarter, and 3.0% over the entire year.
Regional WA values have fallen at a slightly faster pace than those seen in Perth over the previous year.
Values in Tasmania were 0.3% higher in October 2017. Over the three months preceding October however, they were 0.4% lower. 5.4% growth was seen over the entire year however. Whilst annual growth was slower than in Hobart, It actually accelerated from a 1.7% increase last year.
In the Northern Territories, dwelling values rose by 1.1% over the month to be 0.7% higher. Over the year, it rose by 1.3% in total. Whilst growth is still minimal in NT, it’s still far greater than the 5.7% fall in Darwin’s values over the year.
The growth in regional dwelling values continues to lag in the capital cities of each territory however, in most states the growth of property values has made property markets stronger than they were in recent years.