Pandemic property prices: three years on
Since the World Health Organisation declared a global pandemic three years ago, Australia’s Housing market performance has shown some extraordinary, record-breaking figures.
Data specialist CoreLogic’s latest report, “Three years on from the pandemic: is the housing market going ‘back to normal’? suggest some metrics are heading toward pre-pandemic norms, while other parts of the housing market have seen lasting changes.
Eliza Owen, CoreLogic head of research points out, unprecedented expansionary fiscal and monetary policy, and subsequent tightening; heavy border closures, and reopening; and the normalisation of remote work amid lockdowns were pandemic bi products that influenced housing markets.
Here is a summary of the report’s main points:
1. National housing values are 14.8% higher than where they were in March 2020
- National dwelling values rose 28.6% from September 2020 to April 2022.
- A rapid rise in interest rates soon converted this to the largest and fastest downswing on record, with a -9.1% fall from April 2022 through to the end of February.
- Annual sales volumes are down -21.5% from a peak in December.
- Despite the recent volatility, home values remain 14.8% higher overall.
2. Australia’s housing market remains a very ‘mixed bag’
- In the past three years, Adelaide houses have come out on top across the capital cities, with values sitting 43.7% higher than at the end of March 2020.
- This is the equivalent of a $211,097 increase on the median house value across the city.
- This is much stronger than the equivalent median house value gain in Sydney (which has risen the equivalent of $119,830).
3. Regional values are generally high, but migration may be reverting to pre-pandemic trends
Across the combined regional dwelling market, values remain 30.7% higher than at the onset of COVID-19, compared with values sitting 10.4% higher across the combined capitals.
Eliza points out: “While ABS migration data is only reported to March 2021, joint research from CBA and the RAI shows the ‘regional movers index’ declining from pandemic highs. According to the research, net migration from capitals to regions is still higher on average than pre-COVID levels, but has been trending down for the past two years.”
Our research has found our region, Newcastle and the Hunter Valley has faired better than other areas of NSW; in actual fact, HtAG Analytics show the typical house price in Newcastle City Council has marginally risen from $713,205 in March 2020 to $1,000,532 in February 2023.
As we pointed out in our blog at the end of the year, two of our regions made the Top 10 regional SA3’s with highest 12-month value growth value.
4. The preference for houses over units is easing
- Through the height of lockdowns, purchase preferences seemed geared towards houses.
- This was likely a combination of investor activity being relatively low, and homebuyers wanting more space.
- Toward the end of the HomeBuilder scheme in 2021, the portion of residential purchases that were houses have trended lower, and are currently back toward pre-COVID levels.
- In 2022, there was also a peak in the premium on national house values relative to units.
- The median house in Australia reached a record 32.9% above the median unit value. This has also since trended lower, with the median house value sitting 28.3% higher in February 2023.
Download the full report, which includes data on the rental market, here.
We still believe Newcastle is very much a desirable place to live; as well as being commuter distance to Sydney, infrastructure and transport is good, it has many job opportunities, and a more affordable and indeed, many will argue, a more attractive lifestyle than Sydney.
As of Newcastle’s longest established real estate offices, we have developed unique marketing strategies to ensure your property appears at the top of the search list for your type of property. Plus, we have a database of potential buyers looking for many different types of properties, so we can get your property directly in front of people genuinely interested in your type of property.
Read our blog on How to get the best price for your property to see what else us apart from other real estate agents.
If you’re thinking of selling, or would just like to know what your house could get in today’s market, contact us for a free, independent and non-obligatory quote. Our experienced and innovative team can give you great advice on what you can do to improve your property right now and we are constantly achieving great results for our clients.
We’d love to see you in our Cardiff office or you can give us a call on 02 4954 8833. Or send us an email to: mail@apnewcastle.com.au.
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