And we’re back!
For June, the Core Logic housing update discussed how, with the COVID-19 isolation rules relaxing, many of the anchors on the housing market over the last few months have effectively been removed. Using strong words for a dyed-in-the-wool pragmatist, Tim Lawless stated that the downward pressure on housing values could well be milder than first anticipated.
For May, Sydney housing values were reported as down by an average 0.4% which, according to Lawless, demonstrates the market’s resilience even during the pandemic. The different quartiles of the market experienced different degrees of value fall with the uppermost quarter of the market falling by 0.6% (compared to a 16.5% rise over the last 12 months) and the lowest quarter fell by only 0.1% (compared to a 9.6% rise over the last 12 months).
National values remain 8.3% higher than they were a year ago, with the steep growth trajectory at the beginning of the year only blunted by the pandemic. This is demonstrated through other figures as well: the auction clearance rate ‘bounced back’ from a low of about 30% in April, to about 63% in May. Overall. Lawless described the current phase as being one of resilience and recovery, following the weak economic conditions and pandemic disruptions of the last few months.