House prices have continued to out-strip units during November - with Sydney’s median house price jumping back above $1 million - putting downsizers at a distinct market advantage when selling up.
According to the latest CoreLogic report, Australian capital city house values jumped by 1.1 per cent over the last three months, while unit values fell by -0.6 per cent over the same period.
Downsizing.com.au has interviewed several downsizers who have used the strong house market to sell up and move into retirement property, along with release funds into their superannuation.
Sydney’s median house price is now back above $1m, up from $983,000 in September.
In percentage terms, the results were even stronger in most other capital cities.
Over the last quarter, Brisbane houses jumped by 1.7 per cent, while Adelaide saw a 3.5 per cent rise, Perth 2 per cent, Hobart 3.2 per cent, Darwin 4.6 per cent and Canberra 3.5 per cent.
“This trend towards stronger conditions in detached housing markets is evident across most of the capital cities,” said CoreLogic’s Head of Research, Tim Lawless.
“Relative weakness in the unit market can be attributed to factors including low investment activity, higher supply levels in some regions, and weaker rental market conditions across key inner city unit precincts.”
Melbourne’s unit market is the exception, where unit values have recorded a smaller then expected decline throughout the COVID period to-date and a more substantial recovery trend over recent months.
“The resilience in Melbourne unit values is surprising given the high supply levels across inner city areas and the sharp decline in rental conditions,” Mr Lawless said.
“We suspect the stronger trend in Melbourne unit values relative to houses could be short-lived unless overseas migration turns around sooner than expected which would help to shore up rental tenancy demand.”
According to Mr Lawless, if the current growth trend persists, home values will surpass pre-COVID levels in early 2021.
“The national home value index is still seven tenths of a per cent below the level recorded in March, but if housing values continue to rise at the current pace we could see a recovery from the COVID downturn as early as January or February next year. The recovery in Melbourne, where home values remain 5% below their recent peak, will take longer.”
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