Corelogic has released their new hedonic home value index for August. They report a 0.1% rise across the capital cities, while regional values fell 0.2%.
This was the lowest rolling quarterly gain since June last year. Sydney’s rolling 3 month gain was just 0.3%, with a 13% annual rise. Melbourne was 1.9% in the quarter with 12.7% over the year and Hobart led the pack at 13.6%. Perth and Darwin continue to fall.
So the question now is, will the spring surge in sales, and lower mortgage rates support prices, or will we see a fall in the next few months? One other question of course is whether there are series breaks in the CoreLogic data given the revised method. We shall see in the months ahead.
CoreLogic says:
The hedonic imputation approach – Hedonic regression is a statistical technique that measures the relationship between values of residential real estate and the observed values of its characteristics, for example attributes that encompass its geographic location and property features, such as number of bedrooms and bathrooms etc. The hedonic imputation index model essentially estimates the value of every property each day, using the coefficients derived using hedonic regression, and describes the daily movements in the value of the residential real estate portfolio.
They describe the methodology here.
One thought on “Are Sydney Home Prices Leading The Turn?”