Launched last month the inaugural CoreLogic-Moody’s Analytics Australian Forecast Home Value Index – 2016Q1 takes the prize for the worst name given to any report we’ve seen in a long time. But if you can get past that tongue-twisting title, the numbers make this new report worth a read.
The Moody’s Analytics boffins crunch numbers based on incomes, rents, and the employment-to-population ratio to determine if the fundamental value of housing is overvalued or undervalued in a given market.
Nationwide, they say Australia’s housing market is 5.9 per cent overvalued, boosted by markets like Melbourne (a whopping 23.3 per cent overvalued) and Sydney (9.5 per cent overvalued).
Meanwhile Brisbane remains 3.2 per cent undervalued, along with Adelaide (2.2 per cent undervalued) and Darwin (2.5 per cent undervalued).
While imminent growth is not automatically forecast for undervalued markets, that is the case for Brisbane.
“Brisbane’s housing market will maintain its outperformance relative to the rest of Australia. Valuations are expected to rise 4.2% for 2016, helped by good rental growth and relatively strong employment conditions in Brisbane,” the report stated.
Read the full report on the CoreLogic website.