House prices making fast recovery in wake of election: CoreLogic

The first update on house prices since the federal election reveals the housing market is making a speedy recovery.

CoreLogic’s latest home value index for May shows the downturn, led by Sydney and Melbourne, continued to lose steam during the month.

Across the five capital cities, home values slipped 0.4 per cent, which is an improvement on last month when values were down 0.6 per cent.

Brisbane home values slipped 0.4 per cent in the first 27 days of the month — the same amount as in April.

The improving rate of decline across the capital cities was driven by Sydney and Melbourne, where values were down 0.5 per cent and 0.3 per cent, respectively, over the month to date.

There was a bounce in sales across eastern seaboard housing markets last week and over the weekend, with buyers and sellers more confident in the wake of the re-election of the Coalition government and APRA’s moves to make the cost of borrowing cheaper.

CoreLogic senior research analyst Cameron Kusher said the end of threats to changes to negative gearing and capital gains tax, along with APRA’s move to lower hurdles to getting first-home loans and the likelihood of an interest-rate cut, were contributing to the recovery. Source realestate.com.au