A rebound in the pace of capital gains across the Australian housing market throughout February saw the national index rise by 1.1% over the month, with the strongest capital gains in Sydney (+1.7%) and Melbourne (+1.2%), while the remaining capital cities recorded a more modest rise, with Darwin the exception where home values were down 1.4% over the month.
On an annual basis, both Sydney and Melbourne moved back into double-digit annual growth rates, with values up 10.9% and 10.7% respectively over the twelve months ending February 2020. The latest results continue the recovery trend that has been running since June last year, following a peak-to-trough decline of 8.4% in the national index, with larger falls in Sydney (-14.9%) and Melbourne (-11.1%).
While there is large variability in capital growth from region to region, every capital city excluding Darwin is showing an upwards trajectory, demonstrating a geographic broadening in the recovery as low mortgage rates and better access to housing credit fuel buyer demand. Since finding a trough last year, the Australian national home price index finished February only 1.2% below its 2017 peak, according to CoreLogic.