Housing values in Australia’s largest capitals stopped falling and showed a turnaround in March. Though the rise in March was small, this is positive news!
Australia’s housing downturn has slowed since September 2022, with February recording almost no drop in value. The trend continued in March, with housing values in the five largest capitals rising by 0.3% on the Daily Home Value Index.
Sydney has experienced the most significant increase at 0.5%, while Adelaide has recorded a slight fall of 0.2%. Despite the drop in demand, a lower-than-normal flow of new listings coming on the market has kept a floor under housing prices.
However, the market still faces some downside risks, such as a rise in interest rates and a weakening economy, and it is too early to call a bottom of the cycle.
On a rolling four-week basis, which provides a useful proxy for monthly change, Sydney (+0.8%), Melbourne (+0.2%), and Perth (+0.1%) are all recording a lift in values.
The next few months will be critical to understanding whether the housing market is moving through an inflexion point or is merely the eye of the storm.
Remember, the right time to invest in property is when prices are soft, like now!