Capital city home values rise

According to the CoreLogic Property Market Indicator Summary for the week ending 8 January 2017, the combined value of capital city homes increased by 10.6 per cent year-on-year.

The city that saw the most significant increase in home values was Sydney, which posted a year-on-year rise of 15.1 per cent.

Melbourne followed closely with an increase of 13.6 per cent.

Adelaide and Brisbane posted similar results of 4.0 per cent and 3.9 per cent respectively.

Perth was the only capital city to see a decline in home values, falling by 4.5 per cent.

Meanwhile, over the last 12 months Brisbane saw the biggest increase in the total number of capital city properties listed for sale, with an increase of 9.9 per cent to a total of 17,070.

This was followed by Perth with an increase of 7.7 per cent and Adelaide with 7.5 per cent.

Darwin, Canberra and Hobart saw a drop in total listings of 0.6 per cent, 17.8 per cent and 32.4 per cent respectively.

Sydney and Melbourne also saw a decline in listings of 9.6 per cent and 3.0 per cent respectively.

At the end of last year, CoreLogic head of research Tim Lawless noted that while the housing market across capital cities had produced significant growth over the last calendar year, it was likely to “face some headwinds” in 2017 as a result of the predicted moderation of growth rates.

“It’s clear that housing markets across Australia have responded to regional differences in economic and demographic trends,” he said at the time.

“Those regional areas with intrinsic ties to the mining and resources sector have continued to record weaker housing market conditions since the end of the mining infrastructure boom”.

Mr Lawless added that mortgage rates had been trending higher toward the end of 2016, which had “the potential to quell housing demand, especially considering the record-high levels of household debt, which implies consumers are highly sensitive to changes in the cost of debt”.

[Related: Capital dwelling growth surges in 2016]