Newcastle property prices stayed stable in June, defying falls in Sydney, Melbourne and across the nation.
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Data issued by analysts CoreLogic on Wednesday show Hunter house prices continued to hold up in June despite tens of thousands of job losses across the region since coronavirus restrictions began.
Property prices rose 0.1 per cent cross the Newcastle and Lake Macquarie local government areas last month and fell 0.1 per cent in the rest of the Hunter.
Newcastle and Lake Macquarie prices have risen 0.4 per cent in the past three months at a time when the city shed 24,200 jobs. Prices are up 6.5 per cent in the past 12 months.
The June figures for the Hunter contrast with a 0.8 per cent fall in Sydney, a 1.1 per cent slide in Melbourne and a 0.7 per cent decrease across Australia.
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CoreLogic analyst Tim Lawless said the price falls across Australia had been mild so far, despite the economic shock of the pandemic.
"A variety of factors have helped to protect home values from more significant declines, including persistently low advertised stock levels and significant government stimulus," he said.
"Additionally, low interest rates and forbearance policies from lenders have helped to keep urgent sales off the market, providing further insulation to housing values."
The Sydney and Melbourne markets have recorded double-digit growth in the past year despite the recent downturn.
"While it is encouraging to see lenders have recently hinted at an extension in their repayment leniency policies, the government stimulus will eventually taper and banks will require borrowers to repay their loans," Mr Lawless warned.
"The longer-term outlook for the housing market is largely dependent on how well the economy is tracking when these support measures are removed."
Other indicators, including a 59 per cent auction clearance rate and a 42 per cent rise in new listings since early May, suggest the housing market is performing better than expected.
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Michael Parris
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
