REGIONAL property prices continue to outstrip those in metropolitan areas, according to the latest CoreLogic national home value index.
Nationally, house prices are growing at their slowest national pace since October 2020 and will likely come under further pressure if the Reserve Bank of Australia starts increasing the official cash rate as widely expected on Tuesday.
The CoreLogic national home value index rose just 0.6 per cent in April with the annual rate slowing to 16.7 per cent. This compares with the recent annual peak of 22.2 per cent growth over the year ending November 2021.
The data shows Bendigo's median price rose by 1.7 per cent in April, by 3.7 per cent for the past quarter and by approximately 18 per cent in the past year, to a median of $612,096.
He said the Bendigo market remains strong, and historically, has not experienced the roller coaster rises and falls that have been the trend in both Melbourne and Sydney.
"There's still a lot of confidence in the town," he said, pointing to the recent high profile sale of several commercial properties sale in the heart of the city as evidence of the belief in the Bendigo property market among investors.
Mr Bowles said the sweet spot for local residential property was in the broad $500,000 - $750,000 price range, but that there had been solid sales achieved across all sectors in recent months.
"The lower end of the market is always strong. It appeals to investors, to first home buyers and to owner occupiers, and the fact it has all three bases covered is crucial," he said.
CoreLogic's research director Tim Lawless said as the stronger months of capital gain from early 2021 fall out of the 12-month calculation, the annual change in property prices will reduce more sharply over the coming months.
Australia's two largest property markets, Sydney and Melbourne posted their first negative quarter of declining house prices since the extended COVID-19 lockdowns of 2020.
Hobart also recorded its first monthly price fall in 22 months.
"Stretched housing affordability, higher fixed term mortgage rates, a rise in listing numbers across some cities and lower consumer sentiment have been weighing on housing conditions over the past year," Mr Lawless said..
"With the RBA cash rate set to rise, potentially as early as Tuesday, we are likely to see a further loss of momentum in housing conditions over the remainder of the year and into 2023."
Half the capitals across Australia are recording monthly house price growth of one per cent, led by a 1.9 per cent increase in Adelaide.
Regional housing markets have also been insulated from the overall national slowdown, with housing values up 1.4 per cent in April across the combined regionals index, compared with a 0.3 per cent gain across the combined capitals.
- with Australian Associated Press
Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content:
Sign up for our newsletter to stay up to date.