Average income means Home ownership is out of reach as Housing values rise

Average income means Home ownership is out of reach for many as Housing values rise across every capital in May.

CoreLogic’s June Home Value Index (HVI) has been released with all the latest must-know property market metrics, including

• CoreLogic’s national Home Value Index rose another 0.5% in May, taking the national index 1.7% higher over the first five months of the year.
• Capital gains were recorded across all capital cities in May, led by Darwin at 1.6%, with all others posting at least 0.4%.
• Despite monthly momentum, the pace of annual growth in the national HVI slowed to 3.3%, the slowest since August 2023.
• Only Melbourne (-1.2%) and Canberra (-0.7%) have recorded an annual decline in dwelling values, demonstrating the resilience of the market amid relatively high interest rates and cost of living pressures.
• Capital city dwelling value trends are converging, with the gap between the highest and lowest annual changes narrowing to 9.8 percentage points. It hasn't been this close since March 21.
• Lower price tiers across most cities continue to lead value growth, as more expensive market segments start to accelerate off the back of rate cuts. 
• Regional markets are trending positively, with each of the ‘rest of state’ markets recording value gains year-to-date. Regional SA (5.8%) led the growth, while on the other end of the spectrum, regional Tasmania (0.1%) remained flat. 
• Monthly rental growth eased to 0.4% in May. Annual trends show a broad slowdown, except Darwin and Hobart rents have accelerated.
• Easing inflation, expected rate cuts, and improving sentiment point to modest housing growth in 2025, though affordability and lending constraints may temper gains.

Source: CoreLogic & ABC