CoreLogic data finds home values increased 8.1% in 2023

House prices surged by 8-point-1 per cent in 2023, despite rising interest rates and cost of living pressures.

Transcript

00:00 The data shows that house prices have grown nationally by about 8% last year, but actually

00:08 slowed in growth during the back half of the year.

00:11 So last month in December, house prices nationally only grew by 0.4% across the country.

00:20 And CoreLogic says that there are a range of reasons why the heat has been taken out

00:25 of the market in the last half of the year.

00:27 That's because of things like the interest rate hikes that were seen last year, as well

00:31 as worsening affordability and cost of living pressures.

00:35 In terms of rental prices, which is a big issue across the nation, rents grew by 8.3%

00:43 last year, which is roughly about $46 a week increase based on the median rental value.

00:51 And we heard earlier from the head of Australian research for CoreLogic, Eliza Owen, and this

00:56 is a little bit of what she had to say about the rental market.

01:00 Rent growth has now cracked the $600 a week mark when we look at the national median rent

01:07 value.

01:08 And I think while we can probably expect rental growth to slow down a bit in 2024, we're not

01:15 expecting it to drop back to pre-COVID levels just yet.

01:19 So Eliza Owen from CoreLogic and Alison, 8.1% nationally, but across the states, has the

01:24 growth been even?

01:27 Well the report shows that it's been quite a different story ranging across the country

01:32 from a 15% surge in house prices in Perth and a 1.6% drop in house prices in regional

01:40 Victoria.

01:41 So when talking about some capital cities, we're told that Perth, Brisbane and Adelaide

01:46 actually grew at a faster rate than Melbourne and Sydney, especially since the June interest

01:52 rate hike, and that's been put down to the fact that housing affordability just hasn't

01:57 been as pressing of an issue in some states.

02:01 And also when comparing capital cities to regional areas, CoreLogic's data shows that

02:07 capital cities grew at a faster rate than regional areas and combined the capital cities

02:14 grew by about 9.3%, which was more than double the 4.4% rise that was seen in some regional

02:22 areas.

02:23 So a lot of this has been attributed to the fact that migration to regional areas just

02:28 wasn't as strong in 2023 compared with during the pandemic.

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