PROPERTY values in Newcastle and Lake Macquarie have recorded another monthly rise as experts tip that Australia's housing downturn is over.
According to CoreLogic's national Home Value Index (HVI) report released on Monday, house prices recorded a slight growth of 0.1 per cent in Newcastle and Lake Macquarie in April to hold a median value of $825,322.
Unit values in Newcastle and Lake Macquarie are up 0.4 per cent with a median of $643,994.
In the Hunter Valley, houses recorded growth of 0.3 per cent in April to hold a median value of $678,021.
However, unit values recorded a fall of 0.2 per cent.
CoreLogic research director Tim Lawless said the Newcastle and Lake Macquarie region has recorded a 0.6 per cent lift in housing values over the past three months.
It is the third largest rolling quarterly rise across the regional SA4 areas of NSW behind Far West and Orana with 3.3 per cent growth and New England and North West with 0.8 per cent.
"Relative to the onset of COVID, the Newcastle and Lake Macquarie region is still recording housing values well above March 2020 levels, up 30.5 per cent despite the 9.9 per cent drop in values seen since the market peaked in April last year," Mr Lawless said.
Overall, CoreLogic's national Home Value Index (HVI) increased by half a percent in April, following a 0.6 per cent lift in March to be 1.0 per cent higher over the past three months.
Mr Lawless added that it is becoming increasingly clear the housing market has moved through an inflection point after falling 9.1 per cent between May 2022 and February 2023.
"Not only are we seeing housing values stabilising or rising across most areas of the country, but a number of other indicators are also confirming the positive shift," he said.
"Auction clearance rates are holding slightly above the long-run average, sentiment has lifted and home sales are trending around the previous five-year average."
The more positive trend in housing values comes amid a worsening imbalance between supply and demand.
"A significant lift in net overseas migration has run headlong into a lack of housing supply," he said.
"While overseas migration would normally have a more direct correlation with rental demand, with vacancy rates holding around 1 per cent in most cities, it's reasonable to assume more people are fast-tracking a purchasing decision simply because they can't find rental accommodation.
"Many prospective vendors have stayed on the sidelines through the downturn, keeping inventory at below average levels and providing sellers with some leverage at the negotiation table."
Mr Lawless said the growing expectation the rate hiking cycle is over, or nearly over, following a sharp decline in values was another likely factor supporting housing demand.
"This could be contributing to a broader perception that the market has bottomed out, and for those attempting to time the market, that it is considered to be a good time to buy," he said.
"As interest rates stabilise there is a good chance consumer sentiment will improve, bolstering housing market activity from both a purchasing and a selling perspective."
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