The CoreLogic national home value index rose 1.8 per cent in April after bounding 2.8 per cent in the previous month, which was a 32-month high.
Even so, the index is 10.2 per cent higher from the COVID-19 low seen in September 2020.
“The slowdown in housing value appreciation is unsurprising given the rapid rate of growth seen over the past six months, especially in the context of subdued wages growth,” CoreLogic’s research director Tim Lawless said.
“With housing prices rising faster than incomes, it’s likely price sensitive sectors of the market, such as first-home buyers and lower-income households, are finding it harder to save for a deposit and transactional costs.”
In the month, Darwin house prices led the pack with a 2.7 per cent rise, followed by Sydney, up 2.4 per cent. Perth had the slowest price growth in the month among capital cities, up 0.8 per cent.
The four smallest capital cities – Adelaide, Hobart, Darwin and Canberra – had double-digit annual growth, reflecting a smaller COVID-related disruption and an earlier start to the growth phase in 2020.
In contrast, Melbourne is recording the lowest level of annual growth due to a larger downturn, attributable to the extended lockdown period last year.
The trend of house prices outperforming those for units sector continued through April.
“A preference shift away from higher density housing during a global pandemic is understandable. However, a rise in flexible working arrangements also seems to be supporting greater demand for houses around the outer-fringes of capital cities,” Mr Lawless said.
“Relatively weak investor activity, compounded by a supply overhang in some high-rise precincts, is also dampening price growth in unit markets.”
CoreLogic national home value index for April
- National: Up 1.8 per cent (in a month), up 7.8 per cent (annually)
- Sydney: Up 2.4 per cent, up 7.5 per cent
- Melbourne: Up 1.3 per cent, up 2.2 per cent
- Brisbane: Up 1.7 per cent, up 8.3 per cent
- Adelaide: Up 2.0 per cent, up 10.3 per cent
- Perth: Up 0.8 per cent, up 6.7 per cent
- Hobart: Up 1.0 per cent, up 13.8 per cent
- Darwin: Up 2.7 per cent, up 15.3 per cent
- Canberra: Up 1.9 per cent, up 14.2 per cent
- Combined capitals: Up 1.8 per cent, up 6.4 per cent
- Combined regional: Up 1.9 per cent, 13.0 per cent