Home values are rising at the fastest pace in 32 years! What does it mean?

Research group CoreLogic’s national home value index recorded a 2.8% rise in March, which is the fastest rate of appreciation (highest monthly increase) since October 1988 (3.2%).

REIA is also reporting that Australian housing prices have soared by 500% over the past 25 years.

These are big statements with numbers that don’t necessarily mean much to the average punter. It just sounds good, right?

But, what does this mean for home owners and investors?

Well it’s important to recognise that these figures are coming off declines and it doesn’t tell a true story. CoreLogic noted that record price rises were fuelled by a mix of buyers capitalising on low interest rates and pent up demand from those who sat out the market during the early pandemic last year.

Some regions’ data are reporting a sugar hit off the back of COVID and the stimulus packages made available and could expect a sugar crash at the end. Other regions such as the Sunshine Coast are stepping into their prime time with predicted circumstances coming to fruition and showing just the beginning of a massive growth phase.

For those that own property in regions that have seen significant price growth, they may be in a great position to unlock equity from their property to facilitate an additional property investment purchase (kind of like having your cake and eating it too – see our other article on this topic). However, where and what type of property you buy will determine the success of your property portfolio. You don’t want to jump in at the top of a sugar hit only to ride the sugar crash down.

Equally, for those looking to buy and sell their home in the same market, and those wanting to enter the property market for the first time would be wise to consider their next move and in what property market they are going to play in.

In order to understand what this means for your situation and current or future investment options, you need to understand the data, and get below the flashy headlines if you want to make sound investment decisions.

Want to know where the real, long term opportunity is? Connect with our team and book a free property strategy consultation – you’ll get all our insight and data at absolutely no cost to you. Plus, download our free research eBook that pulls apart and breaks down the data into meaningful insights to support your investment considerations.