The property price downturn appears to be over, according to leading market analysts.
CoreLogic and SQM Research say the decline is over and prices are set to rise again.
According to CoreLogic’s Eliza Owen the market likely hit bottom in early March.
“A record return in overseas migration was unexpected, and it has left housing demand far outstripping supply, which has contributed to the start of a more sustained upswing in value”, Owen says.
SQM Research managing director Louis Christopher says auction markets are improving and the fact that vendors are increasing their asking prices shows the markets are heading up from the bottom.
“I believe the worst is over for the Sydney and Melbourne markets”, Christopher says.
“We’ve still got inflation out there and housing historically has been a good hedge against inflation. We’ve also got record population growth, so we’re seeing a surge in underlying demand for accommodation”.
CoreLogic’s daily dwelling values index has rebounded 1.3% since early February.