Perth home values continue to climb

Perth’s median home price values rose by 0.4 per cent in June, as one of just three major states to show an increase in home values.

CoreLogic’s recent home value index reported Perth’s median house price continued to rise, to $558,000 in June, up from $555,538 in May.

Nationally, median values showed their second consecutive fall, dropping by 0.6 per cent to $752,110.

Adelaide and Brisbane were the was the only other major states to show an increase in home values in June, up 1.3 per cent to $642,470 and 0.1 per cent to $784,826 respectively.

Sydney’s median house price values showed the biggest fall in June, by 1.6 per cent to $1,110,660, followed by Melbourne with a 1.1 per cent drop to $798,198.

Housing values also dropped in Hobart, by 0.2 per cent to $735,936.

CoreLogic research director Tim Lawless said the housing market’s sharper reduction in growth coincided with the recent interest rate rise, surging inflation and low consumer sentiment.

“Housing value growth has been easing since moving through a peak in March last year, when early drivers of the slowdown included rising fixed term mortgage rates, an expiry of fiscal support, a trend towards lower consumer sentiment, affordability challenges and tighter credit conditions,” he said.

“More recently, surging inflation and a rapidly rising cash rate have added further momentum to the downwards trend.

“Since the initial cash rate hike on May 5, most housing markets around the country have seen a sharper reduction in the rate of growth.”

The recent increase takes Perth’s median house prices to a  5.8 per cent growth in the last 12 months and 2.1 per cent in the last quarter.

For the calendar year, Perth's median house prices have grown by 4 per cent. 

Real Estate Institute of Western Australia predicts a 10 per cent rise in house prices in Perth during 2022.

REIWA president Damian Collins said Perth's property market had experiences strong price growth in the first half of this year. 

"At the midway point of the year, REIWA's 2022 calendar year forecast of 10 per cent price growth is tracking well," he said. 

"As we move through the winter months, it is likely some heat will come out of the market [but] not enough to impact Perth's overall growth trajectory." 

Edgewater, Riverton and Kalamunda showed the strongest price growth in June, up 3.3 per cent to $620,000, up 3.3 per cent to $736,500 and up 2.8 per cent to $735,000 respectively.