Home Buyers Lead Fastest Recovery

With record-high values for Australian dwellings
expected in a few months’ time, 2020 will see the
fastest market recovery on record. And it’s being led
by owner-occupiers, says CoreLogic.

Since national dwelling values bottomed out 8.4%
below their peak at June 2019, the Australian
dwelling market has quickly recovered 6.7%, says
CoreLogic’s Eliza Owen.

“If growth rates continue at the January trajectory,
Australia’s dwelling market will make a full nominal
recovery by April, marking a 10-month recovery
period,” she says.

“This compares to an average recovery time of 11.7
months in previous cycles. This is remarkable when
considering the relatively long time it took for the
market to bottom-out.”

Owen says housing finance data from the ABS
shows much more activity from first home buyers,
upgraders, and down-sizers in this recovery. During
the previous upswing – from 2012 to 2017 – owner
occupiers accounted for 59% of new housing finance,
but over the past seven months this has risen to 71%.