A 13.5% national increase in dwelling values is the highest rate of annual increase since April 2004 according to data from CoreLogic.
CoreLogic also reports that the heat is coming out of the market with the June 2021 growth in prices a lower rate of growth than during March and May 2021.
CoreLogic estimates that there were approximately 582,900 house and unit sales during the 2020/21 financial year. That is the highest number of sales annually since February 2004.
In Sydney, dwelling values increased by 15% over the financial year. Melbourne’s price increase of 7.7% was the lowest rate of increase of any capital city, partly affected by the lockdowns there during the period. Sydney is likely to experience the same effect.
CoreLogic says that Melbourne’s underperformance is also partly explained by stalled overseas migration.
Brisbane’s dwelling value increase in the financial year was 13.2%
What is the potential outlook for conveyancing practices as a result of the current data? It would seem that the trend of the past financial year of rising housing prices and rising sales volumes are about to come to an end. The greater likelihood is that values will flatten and sales volumes will follow. 2021/22 is unlikely to be as good as 2020/21.