Home values record lowest rise since January

CoreLogic’s latest Hedonic Home Values Index shows the city’s combined house and unit values grew 1.2 per cent in August – down slightly from 1.3 per cent in July, in good news for budding buyers battling “worsening affordability”.House prices increased 1.4 per cent to reach a $954,496 median, while the typical unit also recorded a slight rise of 0.5 per cent to a $615,909.RELATED: Heat reducing in Melbourne’s hot market as Australian home values rise by fastest rate in 17 yearsSigns Melbourne property market is cooling: CoreLogic home valuesRecord home value rise as regional Victoria outpaces recovered MelbourneThe impact of Victoria's lockdown on propertyCoreLogic research director Tim Lawless said the August report provided further confirmation the rate of price growth was moderating in Melbourne after the market peaked in March.“The previous rapid rise in housing values wasn’t sustainable, so this is something that’s very organic,” Mr Lawless said.He said the slowing rate of growth was likely due to “worsening affordability constraints” rather than ongoing lockdowns, as property values were rising dramatically more than wages.“In two months, we are seeing the cost of a home rising more than the average wage over a year,” Mr Lawless said.“There’s even an argument that lockdowns have been supportive of price growth because we see that dive of listing numbers and listing numbers in Melbourne are down 17 per cent compared to last year,” Mr Lawless added.But pent-up supply would likely hit the market for a busy “delayed spring” selling period once the city emerged from lockdown again.Australian housing values had also jumped 1.5 per cent across August – a rate of growth that was still “well above average”, which wasn’t tipped to reverse until there was a change to the current record-low interest rates.Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. Via news.com.au — Australia’s leading news site https://www.news.com.au