CoreLogic data reveals Perth housing market has slowed with house values rising by 0.3 per cent last month

Perth can no longer claim it is one of the strongest housing markets in the country with growth slowing more sharply last month despite improved buyer sentiment. Values across Australia rose slightly in most capital cities in February breaking the short and shallow downturn of the last three months, according to the latest statistics from property data provider CoreLogic. But Perth only rose by 0.3 per cent — the same rate it recorded over the last quarter. Melbourne, which suffered ten consecutive months of falling values, recorded a 0.4 per cent rise during February, as did Hobart. Both cities had previously been among the weakest. Mid-size capitals Brisbane and Adelaide also saw growth slow in February 0.2 per cent and 0.3 per cent respectively, but both also lead the country for strong quarterly growth — Adelaide posting 1.2 per cent and Brisbane 0.9 per cent. Sydney also saw values increase by 0.3 per cent, while Darwin’s rate dropped to -0.1 per cent. Last month, the Reserve Bank cut the official cash rate by 25 basis points, with all the major banks announcing soon after it would pass on the reduction this month. But CoreLogic’s research director, Tim Lawless, said the improved housing conditions are not a direct result of the rate cut but has more to do with improved sentiment rather than any immediate improvement in borrowing capacity. “Expectations of lower interest rates, which solidified in February, look to be flowing through to improved buyer sentiment,” he said. “Along with the modest rise in values, we have also seen an improvement in auction clearance rates, which have risen back to around long-run average levels across the major auction markets.” Regional housing conditions continued to show a stronger growth trend relative to the capital city counterparts in February, with values across the combined regionals index rising 0.4 per cent over the month and 1.0 per cent over the rolling quarter — compared to the 0.3 per cent monthly rise and -0.4 per cent quarterly fall seen in capital city values. Regional WA recorded a 1 per cent increase on house values last month. According to the data, the median house price for Perth has now climbed to $807,933. But if you are in the market for a new home, you might not be able to find one with stock levels in the WA capital still sparse. National rents also rose by 0.6 per cent in February, the strongest monthly gain since May last year, but well below the 0.9 per cent rise recorded in February last year or the 1.2 per cent gain seen in February 2021 at the height of the rental boom. Gross rental yields have lifted a little over recent months, rising from a recent low of 3.65 per cent nationally to 3.72 per cent. This is the result of rents rising at a faster pace than house values since the value trend found a peak in October last year