Canberra’s median value growth for real estate, recorded each month by CoreLogic, has been performing well in 2016 so far. However, the indices for June showed a 1.1 per cent drop in this figure – it now sits at $560,000.
While this is the sort of change that might give property owners pause, it’s important to keep it in a longer term context.
Eyes on the future
A drop in values over one month is not necessarily indicative of a wider trend – especially once you look at the value changes over the previous quarter and year. For the three months leading up to June, Canberra median home values went up 2.6 per cent. This was the best growth in the country, outside of Melbourne and Sydney.
With total gross returns of 8.3 per cent and year-on-year growth of 3.9 per cent, the local market is still on a steady rise.
This means that people won’t be suddenly priced out of the market like they might be in larger centres, while still accumulating capital gains.
Units in particular have continued to perform very well, however. The CoreLogic RP Data Monthly Indices to the end of June showed a 1.75 per cent annual increase in median values, but a 4.02 per cent jump on a monthly basis. This is somewhat of a reversal on the overall figures, and suggests that apartments and semi-attached homes are currently having a bit of a growth spurt.
It can be tricky to read the market and properly understand how your property is performing, but that’s what we’re here for – give us a call if you have any questions. Whether the market is up or down, we can help you understand how to move forward – or whether you should move at all!