Australia’s housing market continued the recovery trend throughout November with dwelling values up 0.8% across Australia.

Of the three largest capital cities, Melbourne led the pack with an increase of 0.7%, followed by 0.6% for Brisbane and 0.4% for Sydney.

It’s great to see that Melbourne has started their recovery, with values only 5% lower than their recent peak, which is pretty good, all things considered.

According to Corelogic’s head of research, Tim Lawless, we are likely to see the home value index surpass pre-Covid levels in January or February. For Melbourne it may take a little longer.

House and unit value performance have shown more divergence in recent months. House values have driven gains in the combined capitals index over the past three months, rising 1.1%. While capital city units fell by 0.6% over the same period.

The stronger performance across regional areas of Australia continued as expected in November, with the combined regionals index recording a monthly growth rate double that of the combined capitals with an increase of 1.4%.

With demand levels continuing to outweigh supply levels and clearance rates in the 70% range, I expect to see the home value recovery continue and snowball into 2021.