National home values up 0.6% in March, breaking a 10-month streak of falls.
After remaining virtually flat in February (-0.1%), CoreLogic’s national Home Value Index (HVI) posted the first month-on-month rise since April 2022, up 0.6% in March. Dwelling values were higher across the four largest capital cities and most of the broad ‘rest-of-state’ regions, led by a 1.4% gain in Sydney.
CoreLogic’s Research Director, Tim Lawless, put the rise down to a combination of low advertised stock levels, extremely tight rental conditions and additional demand from overseas migration. “Although interest rates are high and there is an expectation the economy will slow through the year, it’s clear other factors are now
placing upwards pressure on home prices,” Mr Lawless said.
The RBA lifted the cash rate to 3.60% in March.
Statement highlights:
• Headline inflation is moderating, and the monthly CPI indicator suggests that inflation has peaked in Australia. The central forecast is for inflation to decline this year and next, to be around 3%in mid 2025.
• The Board acknowledged the lag in cumulative interest rate rises reaching mortgage repayments, and that uncertainty remains around the timing and extent of a slowdown in household.
• The Board changed the wording on forward guidance from the previous statement, from “further increases in interest rates will be needed in the months ahead”, to “further tightening of monetary policy will be needed”, hinting at a slightly less hawkish path for monetary policy in the coming months.
