No signs of demand for homes in the country will change | Hunter Valley News

The ‘will they or will they not’ debate over rising interest rates has failed to overtake the property price boom across regional Australia.

Real estate analysts say only the lack of available housing in the country is holding back the rush to the city, not the fear of rising interest rates.

Real estate agents nationwide say interest rates are so low that a small hike wouldn’t impact sales, but rather inventory.

CoreLogic says there is a trend to slow growth in most parts of Australia after the heady days of 2021.

CoreLogic research director Tim Lawless said January has traditionally been a poor indication of trends anyway given the low number of dells.

“As home sales volume emerges from seasonal lows, we should have a firmer reading of the 2022 development,” he said.

“Early indications are that housing markets are starting 2022 with a similar trend to what we saw late last year. Values ​​are still rising broadly, but nowhere near as fast as they were. in early 2021.”

The annual change in national house values ​​hit a new cyclical high in January, with Australian housing rising 22.4% on the year; the highest annual growth rate since June 1989.

The typical Australian house is now worth about $131,236 more than a year ago, according to CoreLogic.

Brisbane recorded the highest annual growth rate among capital cities, with house values ​​up 29.2%.

But the big winner in 2021 was regional Australia which came back strong.

Regional Queensland (2%) and regional South Australia (2.1%) which led the pace of growth during the month, but each major region in the “rest of the state” saw a gain of at least 1.2%, showing strong demand for regional housing.

Regional Australia’s outperformance against capitals has been a feature of much of this cycle so far, driven by a combination of higher demand and low reported supply levels, Mr Lawless said. .

Three of the eight capitals now record a median home value above $1 million.

The performance gap between regional Australia and the capitals widened in January.

Over the past three months, the combined index of regions recorded a growth of 6.3%, compared to a rise of 2.6% of the combined index of capital cities.

Looking back on a record-breaking 2021, the strongest regional markets were still those within commuting distance of cities such as the Southern Highlands and Shoalhaven, Sunshine Coast and Hunter Valley.

Mr Lawless said that demonstrating the strength of demand across regional Australia, the January estimate for house sales was 57.9 per cent above the previous five-year average compared to capital cities, where the Sales activity was estimated to be 26.6% above average.

This story No signs that demand for houses in the bush will change
first appeared on farm online.