Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 1 February 2017

Home values up again in January, but...

City home values up

CoreLogic released its monthly home values report which showed a gain of 0.7 per cent in the month for the combined capital cities index, which was also 10.7 per cent higher over the year. 

Sydney and Hobart recorded the strongest quarterly gains, with Sydney recording by far the strongest result over the year. 

Sydney unit values spiked by 3 per cent in January according to the report. 

Source: CoreLogic

All capital cities recorded increases on this index over the quarter, including resources capitals Perth and Darwin, leading CoreLogic to suggest a bottoming of the downturn for these markets. 

Rest of state home values were up by a modest 2.8 per cent over the year to January.

Twitchy valuers

Perhaps the most interesting section of the report noted that more than 40 per cent of off-the-plan settlement valuations are coming in under contract price in the Melbourne, Brisbane, and Perth unit sectors. 

Even if the valuation shortfalls are relatively small, this likely signals the death knell for the apartment construction boom.