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Canberra comeback continues in June

  • Canberra comeback continues in June background image
  • Canberra comeback continues in June image

Canberra’s property market is on the comeback, with real estate prices continuing to rise steadily in June.

The latest CoreLogic Hedonic Home Value Index, released on Monday, shows dwelling values in Canberra remained on an upwards trajectory, with a 0.3% lift last month.

In the past year, real estate in the national capital has sustained growth of 2.2%, with values up 32.2% since the onset of COVID in March 2020 – an average of almost $212,000.

Rental prices netted a 2.7% annual increase for units and 2.4% for houses.

Windrose Property Principal and Licensed Agent Sam McGregor said ongoing improvements in market strength meant some vendors who purchased at the height of the COVID boom and had since sold their homes had yielded better than expected prices.

“We’re in a period now where we are listing some houses that were bought during the COVID boom,” Sam said.

“What is really interesting is that we are having conversations with vendors about their price expectations and readjusting these to be a little lower than what they paid. I fully warn them that they may be in for a bit of pain and they accept that. But when we go to market, for the right house and with a little bit of competition, they are achieving some very good prices.

“All in all, Canberra is currently a pretty steady market with confidence that it’s a good time to make a lifestyle move. With the right campaign and the right agent, the conditions are there to be matching the same sorts of prices that we were seeing 18 months ago.

“A lot of people have been sitting back saying they’re waiting for the market to crash. Well, the market has crashed and it’s coming back.”

Sam said while there was a cohort of buyers who were conservative about their borrowings with the threat of interest rate hikes, around one in three purchases were made by cash buyers. Cash buyers are adding to price pressures in the already competitive market.

“The higher interest rates go, the more confident cash buyers should be,” he said.

“So, it doesn’t surprise me that we are seeing consistently strong housing market because not everyone is buying a house by getting a big mortgage. Buyers dealing with interest rates are only part of the equation.”

CoreLogic’s research director Tim Lawless said the undersupply of housing remained the primary factor keeping upwards pressure on home values.

“The persistent growth comes despite an array of downside risks including high rates, cost of living pressures, affordability challenges and tight credit policy,” Tim said.

“The housing market resilience comes back to tight supply levels which are keeping upwards pressure on values.”

Tim said most cities were now seeing more new listings coming to market as vendors become more active, but until there is a rebalance of supply and demand upwards pressure on home values is likely to continue.

“The rise in new listings could be a signal that more homeowners are motivated or needing to sell,” he said.

“It is clear that savings accrued through the pandemic are being drawn down for some households due to the combination of a high cost of living and elevated debt levels running up against interest rates that look set to remain higher for longer.”

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