The latest house price index from CoreLogic shows that national prices are well on the way to recovering any losses sustained during the pandemic. In fact, prices will reach a new peak in February if the current rate of growth is sustained.
The previous peak was in April of this year, and prices bottomed out in September. Since September, prices have risen for two consecutive months.
Of note is the fact that property prices rose in all capital cities, for the first time since January. It is expected that Melbourne and Sydney markets will take a little longer to recover, and home values in those cities are currently sitting around their early-2017 levels.
Tim Lawless, Head of Research at Corelogic, said that while the index is currently below March levels, if housing values continue to rise at their current pace, the markets could recover from COVID as early as January or February 2021.
He also added that he would be surprised if the growth rate slowed anytime soon.
Brisbane, Adelaide, Hobart, and Canberra achieved record high house prices in November. Regional Australia is also continuing to grow, with prices in regional areas growing at double the rate of capital city prices.
Westpac’s senior economist Matthew Hassan said that a resurgence in activity, rising confidence, and the promising outlook for a COVID vaccine will further rally property prices in 2021.