How Every Capital Saw high-value Growth In December 2020

How Every Capital Saw high-value Growth In December 2020

In retrospect, the rebound in housing market activity and dwelling values is unsurprising given the rapid and substantial monetary and fiscal response from the Government and policymakers. 

CoreLogic’s research director Tim Lawless said a mild COVID dip in values characterised the year, but unprecedented volatility in the transaction space.
“The number of residential property sales plummeted by -40% through March and April but finished the year with almost 8% more sales relative to a year ago as buyer numbers surged through the second half of the year,” Lawless said.

The national Home Value index one per cent over December, pointing to a strong start to 2021, data analytics firm CoreLogic’s monthly Home Value index found.
It was the third consecutive month of dwelling value gains after declines of -2.1 per cent drop in dwelling values between April and September.
Darwin again led the way in monthly gains over December, with dwelling values up another 2.3 per cent.

Every capital saw real estate value growth in December 2020:

CoreLogic’s monthly home value index found that national home value index price rose one per cent over December, pointing to a strong start to 2021

As remote working opportunities became more prevalent than before and demand for lifestyle properties and lower density housing options became more popular than high-density houses, regional areas of Australia saw housing market conditions surge.

Houses v Units

The national housing market started the expected outperformance of its unit counterpart over December, with national average gains of 1.1 per cent over the month.
Unit values held firm, however, seeing growth in every capital apart from Sydney.
Sydney’s housing market did the heavy lifting for their 0.7 per cent dwelling value gains. Houses were up 1.1 per cent over December compared to a -0.1 per cent contraction in the unit market. See the chart below:

Source: CoreLogic

What does it mean to investors

The mainstream media has been sending fears to investors that real estate business is dead! This research finding gives investors hope to start jumping off the fence and get back to business.


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