iscover
iscover 
According to CoreLogic Australia’s research director Tim Lawless, one of the most significant factors to emerge in the aftermath of the pandemic is the dramatic shift in housing values.
Nationally, home values have experienced a roller-coaster ride, rising by a cumulative 38.4 per cent over the past five years.
This increase has added approximately $227,000 to the median dwelling value, a stark contrast to previous trends.
For context, the five years preceding the pandemic (2015–20) saw home values rise by a more modest 20.6 per cent, while the five years before that witnessed just a 14.7 per cent increase.
The journey has been far from straightforward, Lawless said.
In the early months of the pandemic, the national home value index fell by 1.7 per cent, largely the result of the initial shock caused by the global health crisis, which saw borders close, social distancing measures enforced, and consumer confidence plummet.
Despite these early challenges, the housing market found its footing by June 2020.
Between July 2020 and April 2022, home values surged by 33.1 per cent, an astonishing growth rate despite the absence of overseas migration.
Lawless attributed this surge to several factors, including significant internal migration, a reduction in the average household size, record-low interest rates, and substantial fiscal support measures that buoyed consumer confidence and demand.
It was these combined factors that created the perfect storm for rapid housing value growth.
However, this period of growth was followed by a sharp but brief decline. As interest rates began to rise from their record lows in 2022, national home values dropped by 7.5 per cent over the following nine months.
The increase in interest rates, combined with a drop in sentiment and heightened serviceability constraints, led to reduced demand and a contraction in the market.
After this decline, the housing market experienced a second wave of growth from February 2023, with national home values rising by 14.5 per cent by October 2024.
Lawless said that this resurgence occurred despite high interest rates, affordability challenges, and very low supply, signalling that housing demand remained resilient even under less-than-ideal conditions.
The most recent data, as of early 2025, showed that the market has started to level off. The national home value index dropped by a cumulative 0.4 per cent between November 2024 and January 2025 but saw a slight rebound of 0.3 per cent in February 2025.
According to Lawless, this period of stability reflected the market adjusting to normalising population growth, affordability challenges, and expectations of a gradual and cautious rate-cutting cycle.
Lawless said that while the housing market has experienced considerable volatility over the past five years, the impact of COVID-19 is still shaping its trajectory.
As Australia moves further away from the pandemic’s peak, the long-term effects on housing values, affordability, and demand will continue to unfold.
[RELATED: Property prices positioned to increase]
