PHOTO: Property Market. FILE
Predictions of a COVID-19 property crash have been smashed despite extraordinary volatility in the market in a shock to doomsayers who forecast house values would be slashed.
CoreLogic’s national home value index has found that Australian home values finished the year 3 per cent higher than the same time last year.
That’s despite doom and gloom predictions from the Commonwealth Bank in March that property prices could tumble by up to 30 per cent.
Much of the growth has emerged in regional areas, with first home buyers taking advantage of new work from home arrangements to purchase a family home further away from the big cities.
According to CoreLogic, Melbourne home values are still -4.1 per cent below their March 2019 peak and Sydney dwelling values need to recover a further 3.9 per cent before surpassing the previous July 2017 peak. Perth and Darwin values remain -19.9 per cent and -25. per cent below their 2014 peaks.
CoreLogic’s research director, Tim Lawless said that while the number of homes for sale was in free fall when the pandemic first hit, property values were holding up.
“The number of residential property sales plummeted by -40 per cent through March and April but finished the year with almost 8 per cent more sales relative to a year ago as buyer numbers surged through the second half of the year,’’ he said.
“Despite the volatility, housing values showed remarkable resilience, falling by only -2.1 per cent before rebounding with strength throughout the final quarter of 2020.”
CoreLogic argues that record low interest rates were the big factor in the resilience of property values.
READ MORE VIA NEWS.COM.AU