News & Tips
CORELOGIC HOME VALUE INDEX STATEMENT FROM OLIVER HUME
The following statement can be attributed to Oliver Hume Chief Economist Matt Bell.
“A resurgent established house market has had knock-on impacts for land markets around the country, with Oliver Hume’s February new land enquiry up strongly as consumers digest the latest rate cut and prepare for more. We are expecting increased sales volumes and rising prices across all land markets in 2025, particularly in the second half, as rate cuts work their way through household finances and balance sheets.
Oliver Hume believes there is more upside to the Victorian land market than any other land market in the country. Increased activity depends not only on rate cuts but also on a stronger competitive position relative to the established housing market and rising house prices are the key driver of this equation
Corelogic’s February Home Value Index was released today and has provided the first concrete indication of dwelling prices responding to the changing interest rate environment. Monthly gains have eased in those markets that were strongest in 2024 such as Brisbane, Perth and Adelaide, while Melbourne recorded its first monthly increase in dwelling prices in nearly a year and the largest monthly increase since late 2023.
Even though rates weren’t cut until the second half of the February, the expectation of the change had been in the market since the good inflation result in late January. A recovery in CoreLogic’s auction clearance rates and Oliver Hume’s own measures of new land sales activity through February also pointed toward an improving monthly result. Given the strong historical relationship between interest rates and dwelling values, it was no surprise to see the market returning to price growth at the national level, ending a 3-month downturn.
While February’s rate cut didn’t move the needle much on affordability directly, it is the expectation of further rate cuts that will be driving most of the increase in activity. The market now expects 2 or 3 cuts throughout the remainder of the calendar year, with the first coming at the May or July meeting. Our expectation remains for the high dwelling price growth experienced in Perth, Adelaide and Brisbane to ease, Sydney to remain about the same, and Melbourne to continue to move from falling prices to price growth.”
ENDS
Media enquiries to:
Ben Ready
RGC Media & Mktng
Mitchy Koper
Oliver Hume