Photographer: Brendon Thorne / Bloomberg
Photographer: Brendon Thorne / Bloomberg
Australian home prices rose in January, setting the outlook for another year of growth as lower interest rates and a speedy recovery from coronavirus-induced recessionary demand.
Urban home values rose 0.7% last month, CoreLogic Inc. data showed. published Monday. Home prices gained 2% last year, raising concerns that the real estate market could fall after pushing Australian locks to its first recession in nearly three decades.
“The housing market has started the year on a strong footing, setting the scene for further price increases throughout the year,” said Tim Lawless, head of research at CoreLogic. “Low interest rates have been instrumental in supporting the recovery of the housing market. Mortgage rates are likely to remain at low levels in the future, with few interest rates are possible this year. ”
Home values in Sydney and Melbourne, the two largest cities in the country, rose 0.4% last month. However, following a trend that emerged early in the pandemic, prices in regional areas were again better than in the cities, climbing 1.6% on last month. Detached houses also perform better than flats, as people look for more accommodation amid the move to work from home.
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“Better affordable housing, the opportunity for lifestyle upgrades and lower density housing options are other factors that may be contributing to this trend, along with the new popularity of remote working arrangements. , ”Said Lawless.