The June Home Value Index (HVI) rose by another 0.6% in June, pushing the growth up to 2.4% over the first half of the year off the back of rate cuts delivered in February and May and expectations of further reductions.
"The first rate cut in February was a clear turning point for housing value trends. An additional cut in May, and growing certainty of more cuts later in the year have further fuelled positive housing sentiment, pushing values higher," said Tim Lawless, Cotality research director.
The national median dwelling value hit a record $837,586 and is tipped to rise further as cheaper debt and tight supply bolster prices.
Mr Lawless noted the current housing rebound is occurring against a backdrop of relatively low home sales.
Housing turnover through the first half of the year, based on estimates of sales and total dwelling stock, is tracking at an annualised pace of 4.9%, slightly below the decade-average turnover of 5.1%.
From a supply perspective, advertised stock levels are also low, tracking 5.8% below the same time a year ago (based on data for the four weeks ending June 29th) and 16.7% below the previous five-year average.
"Although demonstrated demand is tracking slightly below average, advertised supply is scarce, creating a more balanced market for buyers and sellers."
Zooming into the headline results, the combined capitals posted a stronger monthly growth outcome relative to the combined regionals for the second consecutive month. The regions, however, outperformed the major cities in the quarterly pace of growth; 1.6% vs 1.4%.
Across the capitals, quarterly growth was led by Darwin with dwelling values jumping by 4.9%, taking dwelling values to a new record high.
Darwin is followed by Perth (2.1%) and Brisbane (2.0%), both of which have also led the five-year growth trend with values up 81.1% and 75.1%.
Monthly gains were recorded across almost every broad region of Australia, with Hobart (-0.2%) the only capital city or rest-of-state region to see a month-on-month fall.
Image by Zac Gudakov on Unsplash
